Ms. Nguyen Thuy Trieu Dang - CEO of Thu Trang Company, informed about the first instance trial of the case of being sued by Bao Trinh Company due to delay in returning capital contribution and dividing profits from the film "Dan choi khong so con roi".
The case was heard at the first instance by the People's Court of Thu Duc City, Ho Chi Minh City at the end of September. The first instance court held that Bao Trinh Company's request to receive back its capital along with 10% of its revenue was inconsistent with the provisions of Article 504 of the Civil Code on cooperation contracts.
The court only accepted part of Bao Trinh Company's lawsuit, which was that Thu Trang Company paid Bao Trinh Company more than 1.3 billion VND, including the remaining capital and 10% of the generated profits. The court did not accept the lawsuit requesting an additional 2.2 billion VND.
The total revenue from many releases of the film "Dan choi khong so mua roi" is more than 52 billion VND, minus the release cost of more than 26.4 billion VND, the remaining revenue is 24.9 billion VND. The release profit is calculated by the film's revenue of 24.9 billion VND, minus the production cost of 23 billion VND, which is 1.9 billion VND. Bao Trinh Company receives 10% of the profit, equivalent to 198 million VND.
Previously, Thu Trang Company paid 1.15 billion VND to Bao Trinh Company and the remaining amount is more than 1.3 billion VND.
"This means that the court accepts all of Thu Trang Company's requests, including the counterclaim that after payment to Bao Trinh Company is completed, the contract will be liquidated.
Currently, we know that Bao Trinh Company continues to appeal. We respect the law and wait for the next trial. "Let the court decide everything" - Ms. Trieu Dang added.
On September 27, 2023, Thu Duc City People's Court (HCMC) announced that in early August, this agency accepted the case of investment cooperation contract dispute between the plaintiff, Bao Trinh Transport Service Trading Company Limited (abbreviated as Bao Trinh Company; An Lac Ward, Binh Tan District) and the defendant, Thu Trang General Entertainment Company Limited (abbreviated as Thu Trang Company; An Loi Dong Ward, Thu Duc City).
The Plaintiff requests the court to resolve the following issues: Force Thu Trang Company to pay the entire remaining capital contribution to Bao Trinh Company of VND 1.15 billion; force Thu Trang Company to pay the profit distribution amount of VND 2.498 billion to Bao Trinh Company.
According to the lawsuit, in November 2020, Bao Trinh Company signed a film production and business cooperation contract with Thu Trang Company to contribute capital to invest in the movie "Dan choi khong so con roi" by director Pham Huynh Dong.
The contract stated that the film's production budget was 23 billion VND, with Bao Trinh Company contributing 10% (equivalent to 2.3 billion VND). The profit that Bao Trinh Company received was calculated by multiplying the distribution profit by 10%.
The plaintiff claimed that after the film finished showing in theaters, Thu Trang Company delayed returning the capital contribution and distributing profits to Bao Trinh Company as per the signed contract. Therefore, Bao Trinh Company filed a lawsuit. The film "Dan choi khong so con roi" will be released in theaters in 2022.
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