REBECCA Update: Millions Must Be Raised or Returned by Year's End
According to a new update from Bloomberg News, REBECCA's lead producer, Ben Sprecher, has an approaching deadline to complete capitilization for the musical, or to return the raised funds - some of which have already been spent.
Bloomberg reports that "If Sprecher doesn't raise the minimum $12 million capitalization by year-end, he must return money "forthwith" to any investors who haven't waived their right to a refund, according to offering papers obtained from the office of New York Attorney General Eric Schneiderman through a Freedom of Information Law request. Sprecher has said he's talked to investors about amending the offering papers. He declined to comment for this story. His co-producer, Louise Forlenza, didn't return an e-mail."
They also note that the production has spent $1.3 million to date on items including scenary, production costs, and salaries. Previous reports hat pegged the amount of funds spent at closer to $6 million. They have until December 31 to raise the remaining funds to get the show up, or they will face having to return the spent funds to the show's investors.
Click here for the Bloomberg story.
As BroadwayWord previously reported, following REBECCA's cancellation on Broadway and the news that financier and stock broker Mark C. Hotton was arrested and called 'a considerable threat' to the community, he is now awaiting trial. Hotton was arrested for defrauding the show's producers of $60,000 and for an unrelated $750,000 real estate scheme which prosecutors said featured some of the same deceptions used in the REBECCA fraud. To read the full 19-page criminal indictment on Hotton, click here.
In October, producers filed a $100 million fraud lawsuit in state Supreme Court against Mark C. Hotton, a former stockbroker from Long Island on whom they were relying to raise $4.5 million of the show's $12-million budget. For his criminal trial, Hotton faces 20 years for each of two counts of wire fraud, if convicted.