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Hong Kong construction firm says investment in Hollywood-China film venture on hold
HONG KONG (AP) ' A Hong Kong construction company says a plan to invest $220.5 million in a Hollywood-China movie production venture is on hold because of rocky financial markets.
Paul Y. Engineering Ltd. said Friday that it wasn't able to raise enough money from selling new shares to investors before a year-end deadline for the proposed investment in Legendary East Ltd.
Chairman James Chiu blamed the "current difficult environment of the capital markets."
Under the proposed deal, Paul Y. would take a 50 percent stake in Legendary East, Hollywood production house Legendary Entertainment would have 40 percent and China's Huayi Brothers Media Corp. 10 percent.
The company said it will try again in 2012 by working with the partners to modify the structure of the deal.