Aramid Entertainment Fund Ltd., a hedge fund specializing in financing movies, sought bankruptcy court protection from creditors to deal with the costs of suing borrowers who failed to repay loans, Bloomberg News reported yesterday. Aramid “has been embroiled in substantial and time-consuming litigation relating to some of its investments,” Geoffrey Varga, a consultant helping to liquidate the fund, said in court filings. “The prosecution and defense of these actions has consumed a substantial portion of AEF’s liquidity and exposes it to potential liability.” The fund offers financing to film and television producers and distributors “secured against a variety of assets,” according to its website. Those assets include films and equipment. Aramid listed consolidated book-value assets of $237.3 million and consolidated debt of $11.5 million as of April 29 in chapter 11 documents filed on Friday.
