3/15/2011

Summit Investor’s Libel Suit Reveals Omar Amanat’s Control

EXCLUSIVE: Omar Amanat may be the most powerful person in Hollywood you’ve never heard of.

The press-shy investor filed a libel lawsuit last week against four British publications for calling him an “impostor.”

But he’s no impostor; Amanat controls 20 percent of Peak Group Holdings, the biggest shareholder in Summit Entertainment, according to documents obtained by TheWrap.

Also read: ‘The Secret Summit Prospectus’

Those documents further show that Amanat has huge power at the independent film studio.

According to the lawsuit and related ownership agreements, Amanat can block any decision by Summit’s board of directors, of which he is not a member.

“He can block substantially all material actions or votes with respect to Summit simply by withholding his written consent,” according to the lawsuit, which TheWrap obtained in full. (Read the full lawsuit here.)

to continue reading, click more after the jump.

It continues: “Without all four Peak appointed Summit Class A directors’ unanimous written consent, Summit cannot undertake any of the following important strategic or basic corporate decisions: a merger, acquisition, joint venture or strategic transaction….”

The problem: Amanat is now a powerful figure in Summit with an ax to grind, able to torpedo everything from mergers to expenditures.

In fact, TheWrap has learned that Amanat considered selling his stake in Peak last year to corporate raider Carl Icahn after the scandal erupted.

He has since calmed, and now Amanat stands gain tens of millions of dollars in dividends from the $750 million refinancing at the studio which closed last week.

In the suit filed in London’s High Court, Amanat is seeking at least 7.5 million pounds plus unspecified damages to reputation against news organizations, including Express Newspapers, the publisher of OK! and WENN, for reports saying that he lied about his connection to the studio to host a charity event with the stars of the hit film “The Twilight Saga: New Moon.”

“It basically was the worst thing to be called as a businessman, to be falsely labelled an impostor. It was an impossible thing to defend, and it had a cascade effect that was pretty crippling,” Amanat told TheWrap.

In the backlash that followed Amanat says he lost several multi-million-dollar entertainment deals, including a $4 million agreement to provide technological assistance to the British TV show “X-Factor.”

Not even a note from Summit’s CEO, Rob Friedman, and president, Patrick Wachsberger, acknowledging that Amanat was a former board member and was authorized to host the “New Moon” screening was enough to force the publications to print corrections.

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