The film When The Sky Falls, about the late journalist Veronica Guerin, featured in High Court proceedings in Dublin yesterday. Johnstown Ltd, an Isle of Man company said to have been set up and financed by a Dublin businessman, Mr Dermot Desmond, to fund the production, has taken steps to oppose payment of £2.3 million to companies involved in the film's production.
Mr Eoghan Fitzsimons SC, for Johnstown Ltd, said there were legal proceedings in the UK which, if resolved in a particular way, would resolve the Irish action.
Mr Justice McCracken has adjourned for mention tomorrow applications by four companies which were concerned with the production.
The companies want the court to order Johnstown Ltd to give financial security for legal costs which the companies may incur in defending proceedings bro ught against them by Johns town.
The four companies are Thiennez Ltd (which traded as Irish Screen Pictures, Northbrook Road, Ranelagh, Dublin) and its agents; ISH Sales and Distribution Ltd, Cookstown Industrial Estate, Tallaght, Co Dublin; and ICON Entertainment International and Film Finances Inc, both with London addresses.
At an earlier High Court hearing Johnstown secured an order restraining, Thiennez Ltd and ISH Sales, until after the hearing of the company's claim, from seeking payments to them of £2.3 million which is lodged in Anglo-Irish Bank Corporation (Isle of Man) plc.
It is claimed that Johnstown was formed by Mr Dermot Desmond, who invested the £2.3 million as bridging finance to make the film.
Johnstown claims that a Dublin accountancy firm, Bastow Charlton, prepared a scheme in which investors would place their money in Thiennez to be used by Thiennez to effect production of the film.
It is also claimed that agreements provided, on completion and delivery of the film, that Johnstown would pay Thiennez and ISH Sales for the onward payment to investors of £2.3 million.
It was alleged on behalf of Johnstown during the earlier hearing that the film's completion date was not adhered to by ICON and Film Finances. It was also alleged that an insurance company had repudiated an agreement to indemnify Johnstown Ltd in the event of there being insufficient receipts from the marketing and sale of the film.
Mr Lydon MacCann, for Thiennez and ISH Sales, said that the court order granted to Johnstown had frozen money to be paid by his clients to investors.
The applications were adjourned for mention tomorrow.