L.A.-based studio Mike Young Productions is taking legal action against Moonscoop U.S. Holdings, alleging that it blocked the company’s attempt to take over the U.S. arm of the troubled French animation outfit Moonscoop.
“We are saddened by the financial events at Moonscoop France which have lead them to file a petition for court protection from their creditors,” studio founder and president Mike Young told Animation Magazine. “Our position was, and is, that we want to buy back the shares of our U.S. company. We have made several attempts to buy back our company, however this process is being controlled by a Receiver (“Trustee”) out of France which has made the process very difficult. The lawsuit is a byproduct of our frustration where we believe that our rights under the operating agreement are being ignored and we will take all steps to protect our U.S.-based company. We are continuing with bids to buy back the shareholding that is under the control of the Receiver.”
Moonscoop U.S. Holdings owns 51 percent of the Los Angeles-based Moonscoop LLC, while Mike Young Productions holds the remaining 49 percent. Moonscoop U.S. Holdings is a subsidiary of the Paris-based Moonscoop SA, which filed bankruptcy earlier this year.
According to the lawsuit, Mike Young Productions had tried to buy out Moonscoop U.S. Holding’s 51 percent of Moonscoop LLC before French Moonscoop entered into administration earlier this year, and the offer was turned down. The French Moonscoop instead offered for sale the holding company’s assets to satisfy its creditors, while blocking Young’s attempts to buy the holding company’s assets.
Mike Young Productions is asking the court to prevent Moonscoop U.S. Holdings from interfering with its rights under the operating agreement. It is seeking $5 million in damages for breach of contract, breach of faith, breach of fiduciary duty, intentional interference with prospective economic advantage, and violation of business and professions codes.
