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State: Film Studio Fails To Make Bond Payment

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PONTIAC (WWJ/AP) - The state says an $80 million film studio that opened last year in Pontiac at the site of a former General Motors complex has failed to make a $630,000 payment to bondholders.

The Oakland Press of Pontiac reports Tuesday that the State of Michigan Retirement System paid $420,000 of the payment on Raleigh Studios’ facility under an agreement that guaranteed the bonds.

Michigan Department of Treasury spokesman Terry Stanton says in an email to the newspaper that Raleigh Studios wasn’t able to make the $630,000 payment to bondholders by Feb. 1 as required.

An email seeking comment from Raleigh Studios was sent Tuesday morning by The Associated Press.

Columnist Nolan Finley with The Detroit News reported last month about the possibility of a payment default by Raleigh Studios.

The studio was recently used for the Sam Raimi-directed film “Oz the Great and Powerful,” and was also involved in the Hugh Jackman movie “Real Steel,” and the Demi Moore and Miley Cyrus film “LOL: Laughing Out Loud.”

TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.

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