19 August 2016

Asset Freeze: Twentieth Century Fox v. Dotcom

A two million dollar payout expected by Kim Dotcom on the sale of a sumptuous Coatesville property he previously rented has been frozen by the High Court and his monthly drawdown from frozen assets for living expenses reduced to $70,000.
US film studios have taken action around the world to freeze assets controlled by Mr Dotcom as they seek to extradite him from New Zealand for alleged breach of copyright.  Extradition is fiercely contested.  Assets totalling $US34.9 million are currently frozen in New Zealand and Hong Kong, the bulk being some $US32 million in Hong Kong bank accounts.
When the film studios discovered Mr Dotcom had swung a payout deal with the landlord of his former Coatesville residence, they asked the High Court to freeze this cash as well.  The deal with his Coatesville landlord is for Mr Dotcom to receive two million dollars on sale of the property with an interim payment of $250,000 in December 2016 if it is not sold by that date.  Justice Courtney extended the freezing order to cover these payments.
She also adjusted the level of monthly drawings to be taken from frozen funds to meet ordinary living expenses.  Mr Dotcom is currently separated from his wife.  He pays the costs of his childrens’ private school fees, their two nannies and security.  Since leaving the rented Coatesville mansion, Mr Dotcom has rented an Auckland apartment.  He has three personal staff on his payroll and also pays their accommodation: a personal assistant, a chef and a housekeeper.  Security for himself and his family costs $10,000 a month.  Drawings were reduced from $80,000 per month to $70,000.  The film studios wanted to see monthly drawings slashed to $10,000.     
Twentieth Century Fox v. Dotcom – High Court (19.08.16)

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