Bloomberg News is reporting that US media and entertainment giant Paramount Global is suing The London Resort in the High Court.
The £2.5 billion London Resort is a hugely ambitious theme park destination planned for a site on the Swanscombe Peninsula in Kent, to the east of London. Despite having significant government backing and being granted the status of a Nationally Significant Infrastructure Project (NSIP), the project has faced several challenges over the last decade and little progress has been made.
The court case revolves around a restructuring implemented in April this year by London Resort Company Holdings. This gave creditors equity in exchange for money owed.
Paramount is arguing that this is unfair due to “irregularities”.
The entertainment firm, “is alleging debts that affected the vote were inflated and assigned to a third party in a ‘sham’ transaction and is demanding to see the documents that underpin those dealings.”
Major IP owners
A key part of The London Resort project was the involvement of major intellectual property (IP) owners. Paramount was an early partner. Home to a host of high-profile brands and franchises, from Mission:Impossible to The Godfather, the plan was for the creation of state-of-the-art rides and attractions based on these brands. Other partners included key British broadcasters The BBC and ITV, and film and animation studio Aardman, though these companies are no longer involved.
Owned by Kuwait’s Al-Humaidi family through various holding companies, the future of The London Resort is, at best, uncertain. The company entered into a form of insolvency proceeding in April, known as a company voluntary arrangement (CVA).
Environmental concerns
In addition to the Paramount case and the CVA, the project has faced a serious challenge from environmental groups. These include the Royal Society for the Protection of Birds (RSPB) and Buglife.
The RSPB and some other wildlife groups wrote to UK government minister Michael Gove earlier this year. They asked that the nationally significant status be revoked due to the importance of the 465-hectare site to wildlife.
The letter highlighted the fact that, “Over 2,000 species of insects and other invertebrates have been recorded at the Swanscombe Peninsula, including the critically endangered distinguished jumping spider” and that the site is, “the richest site for breeding birds in the south east”. The site has also been designated as a Site of Special Scientific Interest (SSSI) by Natural England.
Last year the Save Swanscombe Peninsula campaign team alongside RSPB, CPRE Kent, Kent Wildlife Trust and Buglife revealed an “alternative vision” for the site.
The developer had plans to remain as sustainable as possible. Its aim was to be carbon neutral and to create positive impacts for people and the environment. They said some of the many benefits of the project would include jobs, regeneration, infrastructure, and an improved leisure offering.
