Moon River Studios has reported to the Securities and Exchange Commission that its two-picture deal with Director Penny Marshall has been canceled.
In a filing dated Oct. 23, the parent company of Moon River, FONU2, said there was some confusion regarding the start dates of the film “Effa,” and the triggering of required payments.
Effa is the story of Effa Manley, the first woman to be inducted into the Baseball Hall of Fame. She managed the National Negro League’s Newark Eagles in the 1930s and 1940s.
Documents filed with the SEC Wednesday say both parties agreed to cancel the deal.
Marshall will retain more than 7 million shares of Moon River stock and will receive the option on the screenplay Effa, reducing liabilities on Moon River’s balance sheet by $425,000.
The recent filings also say Moon River is settling a lawsuit by Mammoth Corp. of Lake Zurich, Ill., spelling out how it will pay Mammoth $140,000 by May.
The Effingham County Industrial Development Authority (IDA) recently cut Moon River Studios from 1,560 acres to 51 acres on property the IDA owns at Old River Road and Interstate 16.
The new deal with the IDA calls for Moon River to invest at least $10 million in capital and create 250 full-time jobs within five years.
Moon River has previously reported to the SEC that it is in default on a $600,000 note owed to AppleBox, a film production equipment company.