Already Underwater, Cinefamily/Fairfax Loads Up on More Debt
As the Harkhams and Erin Hensley try to leave the Cinefamily in the rear-view mirror and reboot as Fairfax, Cinefamily's debts have continued to dog them. They have acknowledged unpaid debts to distributors, donors, contractors, and others, even as they have declined to account for Cinefamily's assets.
Following collection efforts, creditors have reported to CinefamilyAccountability (CA) a range of responses. By far the most common report is of Cinefamily unresponsiveness. But CA has received reports of some creditors being promised repayment in the future, some creditors being offered pennies on the dollar, and some creditors being made whole. (This site's author, a minor creditor, has alternately been told by Cinefamily personnel that there are no funds, and that "we might refund" the debt.)
According to a new filing with the Los Angeles County Recorder's office, amidst all this debt the Harkhams appear to have... taken on more debt!
The April 13, 2018 filing by Community Bank of Pasadena indicates a $250,000 promissory note secured by the Silent Movie Theater. Community Bank already holds a first mortgage in excess of one million dollars based on a 2015 refinancing of the property.
Cinefamily/Fairfax does not appear to be using the new financing to repay existing debts. They have spoken of renovations to the Silent Movie Theater and may be using these funds for that purpose. CA has reached out to the Harkhams and Hensley; this post will be updated with new information.
UPDATE 6/3/18: Sammy Harkham confirms that "a loan has been taken out for renovations." Beyond that he says "we’re not ready to discuss details" about current efforts but that "[w]e will be making an announcement soon."
Note: We regret the poor image quality of the Deed of Trust above. (The Recorder's Office charges $35 for a copy of the document; taking pictures of the screen is free.) CA can provide photos of the entire 11-page document on request.