Chase Manhattan Bank v. New Hampshire Insurance

OPINION OF THE COURT

Ira Gammerman, J.

Introduction

This action involves a dispute over two insurance policies issued in connection with what is known as insurance-backed gap financing of film production. The Chase Manhattan Bank (Chase) provided funding to George Litto Pictures, Inc. (GLP), an entity established by producer George Litto, in two facilities: a $7.5 million working capital facility insured by a contingent extra expense policy, and an $89 million facility to fund the production of individual films. One film, “The Crew,” was produced, insured by a cash flow policy, providing…