Albert Pyun/John Laing's MAX HAVOC film a resounding success!!

GUAM SPENDS $800,000 ON FILM, GETS $9,000 BACK

By Gaynor Dumat-ol Daleno
Pacific Islands Report
December 14, 2006

HAGÅTÑA, Guam - The Guam Economic Development and Commerce Authority made US$9,090 from the foreclosure sale of all rights to "Max Havoc: Curse of the Dragon," an amount less than 2 percent of its US$800,000 investment in the movie, a bank letter to GEDCA shows.

The movie's rights were bought for US$83,000 by Up North Entertainment, a production company partially owned by John Laing, the executive who helped convince the development agency to invest in the film in the first place, according to corporate records.

The economic agency put US$800,000 worth of public funds on the line by agreeing to put up the cash as collateral for a loan to produce the movie in 2004.

When the movie loan defaulted earlier this year, the bank took the US$800,000 collateral.

With GEDCA's US$800,000, and the US$83,000 sale of all rights to the movie, the movie loan has been paid off, Comerica Bank's Entertainment Group wrote to GEDCA on August 31, according to a copy of the letter.

GEDCA's share of the US$83,000, the bank wrote, is US$9,090, which the bank sent in a check to the economic agency.

"As a result of (the sale), all of the obligations owing to the bank have now been paid in full, and the buyer acquired all of the assets of Guam Motion Pictures and all of the interests ... of Rigel USA Inc. in the picture," the bank wrote.

The bank added that GEDCA could then proceed to take action against Guam Motion Pictures.

In October, the economic agency sued in the Superior Court to try to recover its US$800,000. The economic agency sued Laing, an executive of Guam Motion Pictures, which was established for the movie's production by parent company, Rigel Entertainment USA. Guam Motion Pictures and Rigel were named defendants.

After the foreclosure sale of "Max Havoc," Laing remains connected to the movie. The movie's rights were sold to Up North Entertainment, a Canada corporation incorporated in June 2006, two months before the rights to the movie were sold. And according to corporate records of Up North Entertainment, Laing, of Los Angeles, is one of the three listed directors of Up North.

Meanwhile, the parties the agency sued in the Guam court have sued GEDCA in California. But the agency has stated that the California suit "is a tactical maneuver to try to avoid their debt to GEDCA."