New York, New York 10036

(212) 221-5700

Attorneys for the Debtor



In re:

Chapter 11


Case No.:






) ss.:


SONJA TREMONT-MORGAN, being duly sworn, deposes and


1. I am the individual debtor herein, and as such I am familiar

with the facts and circumstances set forth herein.

2. I submit this Affidavit in accordance with Local Rules of this

Court in support of my petition for relief under Chapter 11 of Title 11 of the

United States Code (the "Bankruptcy Code").

3. There is no pending bankruptcy case against me, and the

petition for reorganization is filed as a voluntary Chapter 11 case under the Bankruptcy Code.

4. The decision to seek bankruptcy relief was not an easy one,

but unfortunately, I am at a crossroads in my life. I was a successful business person before I met and married John Adams Morgan in 1998 with considerable assets of my own, including multiple homes.

5. Mr. Morgan is many years my senior and a descendent of J.P.

Morgan and John Adams. As a result of his family lineage, he has enjoyed certain notoriety and has successfully operated an investment company for decades. Our marriage lasted approximately ten (10) years and resulted in the birth of a daughter, born in 2000.

6. The ensuing divorce with Mr. Morgan has been bitter. It is

still not yet fully resolved even though the Connecticut divorce court issued a detailed decision on April 18, 2008 under which I was awarded equitable distribution pursuant to a post-nuptial agreement. Mr. Morgan intends to challenge the equitable distribution award which is not yet final because of an open issue relating to establishing an appropriate escrow regarding certain jointlyowned property in France.

7. Prior to the divorce, my husband and I participated in a

company known as Sonja Productions LLC which was established to produce independent motion pictures. I initially enjoyed modest success with a motion


picture known as The Marsh, a small budget film starring Forrest Whitaker which was released in 2006 and received favorable reviews although it was not profitable.

8. My next project, however, proved to be an unmitigated

disaster. I became involved in a failed venture with Hannibal Pictures, Inc. to make and produce a movie known as Fast Flash to Bang Time ("Fast Flash"), potentially starring John Travolta. This movie never got off the ground after Mr. Travolta insisted on various conditions that could not be met by Sonja Productions nor my coproducer, Hannibal Pictures. Nevertheless, Hannibal Pictures commenced suit against Sonja Productions and me in the Federal Court in California for fraud, negligent misrepresentation, and breach of contract. The suit centered on the contention that I allegedly misrepresented the financing available to make Fast Flash.

9. I do not believe that I was adequately represented at trial) and

Hannibal Pictures obtained a large verdict of approximately $7,000,000 in 2007. I subsequently retained the finn of Clifford Chance US LLP to pursue an appeal of the judgment before the Ninth Circuit Court of Appeals in California making the following arguments:

) I am also pursuing a malpractice claim against my fanner attomeys in California.


1. The District Court erred by permitting Hannibal Pictures to recover in tort and its contract law claim.

A. California law precludes recovery of tort when a plaintiff has not demonstrated "Harm above and beyond a broken contractual promise. "

B. Because Hannibal Pictures' injury is limited to purely economic loss due to disappointed expectations, it cannot recover in tort.

C. Barring Hannibal Pictures' recovery in tort is consistent with the policies that underlie the economic loss rule.

II. The District Court erred by permitting Hannibal Pictures to recover speculative lost profits from Fast Flash.

A. California Law presumes that a plaintiff cannot recover lost compensation that might have been received from an unestablished business venture.

B. The trial evidence failed to establish as a matter of law that the film would have been completed or generated revenue.

1. Fast Flash, like most other independent films, was a high-risk venture.

2. The project collapsed long before it could have generated revenue.

10. The entry of the judgment by Hannibal Pictures, however,

turned my life upside down. I subsequently became the subject of vigorous

judgment enforcement proceedings in New York and face a whole new round of

litigation relating to the alleged violations of restraining orders and other restraints in

the State Court.


11. To make matters worse, my former husband refuses, inter alia,

to pay a lump sum equitable distribution award of $3,000,000 until all of his appeals are exhausted. I understand that under Connecticut law, the filing of an appeal effectively stays implementation of the equitable distribution award.

12. Moreover, my former husband has not fully cooperated in

disposing of jointly owned assets, and claims a security interest against my 50% interest in the Telluride, Colorado property.

13. Historically, our properties have always been owned through

various limited liability companies as noted in the bankruptcy schedules. My most valuable asset is a townhouse located in New York owned by Starn LLC, of which I am a 99.6% member. Starn is an acronym for Sonja Tremont Adams Morgan and has held title to the townhouse since its original acquisition. Moreover, Stam LLC also maintains various bank accounts from which I pay for my daily living expenses, support my daughter and maintain the townhouse and other properties.

14. Due to the nature of the assets, they are relatively costly to

maintain on a monthly basis. I am also required to pay a mortgage of approximately $16,000 a month in connection with the property in Colorado even though my former husband has denied me any access for several years. Additionally, my former husband has denied me access to the property in France even though I am the owner.

15. My goal III seeking Chapter 11 relief is to complete the

appellate process III California and, hopefully, obtain a reduction of Hannibal


Productions' claims. I remain optimistic regarding my chances and also hope that the Chapter 11 can be a platform to finally resolve my divorce.

16. All briefs have been filed in connection with the Ninth Circuit

appeal. Accordingly, I intend to promptly move to vacate the automatic stay so as to allow the appeal to be argued and decided following the bankruptcy filing.

17. If successful on the appeal, the filing of a plan of

reorganization will not be difficult. Although I shudder at the thought, if I am unsuccessful, I will have to address the claims of Hannibal Pictures through some type of marshaling of assets in bankruptcy and likely the sale of various properties. In the interim, I hope to preserve the value of my assets and continue my career as a TV personality and a current member of the cast of the Real Housewives of New York City. My involvement in this show positions me to pursue other endeavors, such as writing a cook book, developing a clothing line and other license opportuniti es.

18. My current monthly income including support is about

$26,000 per month and I expect this income to improve as new opportunities materialize.

19. A complete listing of my assets, liabilities and living

expenses is set forth in the various schedules accompanying this petition.

20. At various times, I have lived a charmed life. At this

juncture, I am a struggling single mother attempting to reinvigorate my career, while facing difficult financial and legal problems. I do not want or expect


sympathy from anyone, but simply a fair and reasonable opportunity in bankruptcy

to see if I can finally resolve the claims of Hannibal Pictures through appealor=-,

settlement and reach a just end to my divorce.

Sworn to before me this

II"' d~~7J;_10 _




Notary blic

H:\5ylvin\word\Sonja Tremont-Mcrgun (Bankruptcyul.ecal Rule Affidavit ~ J l~ l l-f Dv.i.rlcc


B4 (Official Form 4) (12/07)

United States Bankruptcy Court Southern District of New York


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Following is the list of the debtor's creditors holding the 20 largest unsecured claims. The list is prepared in accordance with Fed. R. Bankr, P. I 007(d) for filing in this chapter II [or chapter 9] case, The list does not includet l) persons who come within the definition of "insider" set forth in II U.S.C. § 10 I, or (2) secured creditors unless the value ofthe collateral is such that the unsecured deficiency places the creditor among the holders of the 20 largest unsecured chums. lf'a minor child is one olthe creditors holding the 20 largest unsecured claims, state the child's initials and the name lind address of the child's parent or guardian, such as "AB., a minor child,' by John Doe, guardian." Do not disclose the child's name. See, II U.S.c. § 112 and Fed. R. Bank P. I007(m).


Name of creditor and complete mniling address including zip code


Narnc, telephone number and complete mniling address, including zip code, ofemployee, agent or department of creditor Iamilinr with claim who may be contacted


Nature afclaim (trade debt, bank loan, government contract, etc.)

(4) Indicate if claim is comi ngcnt, unliquidated, disputed or subject to setoff

(5) Amount of claim'(if secured II[SO suue value of security)



Hannibal Pictures

clo Maritt Hock Hamroff & Horowitz, LLP 400 Garden City Plaza

GC1.~I:l_~_t:l_91tx~_tJ_Y11?:3_O_______ __ _. __ .. . __ _._ .

Clifford Chance US LLP


8 Attn: Timothy H. McCarten, Esq.

~ 2001 K Street, N.W.

~ IJ\fC1~hill_glon,[)9 20O_O_~ ~_ .... _ .....

i Lax & Truax, LLC

.I: 1275 Post Road, Suite 200C

'"" Fairfjell:l,CT 06824 ~ ~ 8!



Browne Woods George LLP Attn: Eric M. George

2121 Avenue afthe Stars, 24th FI.

L,1?~._~ll_g~I~!O)C;~~()()_§7 .


'" Robert M. Heller, Esq. cii

<:: 1875 Century Park E #1000 u:

til Los Angeles, CA 90067·2533

Contingent Unliquidated Disputed

Contingent Unliquidated Disputed



~ The Law Firm of Franklin Montgomery

~ 30 Vesey Streeet, 7th Fl.

e fi~lIV"_y()r~L~Y._jOO()I.








In re:



Case No.




1. Hannibal Pictures, Inc. v. Sonja Tremont-Morgan, etc.

Supreme Court, New York County Index No. 103668110


Moritt Hock Hamroff & Horowitz LLP Attn: Stephen J. Ginsberg, Esq.

400 Garden City Plaza

Garden City, NY 11530

2. Hannibal Pictures, Inc. v. Sonja Tremont-Morgan, etc.

United States District Court, Central District of California, Western Division Case No. CV06-1814 WDK


Hamrick & Evans, LLP

Attn: A. Raymond Hamrick, III

III Universal Hollywood Drive, Suite 2200 Universal City, CA 91608

3. Robert M. Heller, A Prof. Law Corporation, a Calif Corporation v. Sonja Morgan aka Sonja Tremont-Morgan, etc.

Superior Court of the State of California

County of Los Angeles - Central District

Attorney: Robert M. Heller

1875 Century Park E., #1000 Los Angeles, CA 90067-2533

4. 101m Adams Morgan v. Sonja Tennont Morgan Superior Court of Connecticut

Index No. FST FA 06 40095858S


Marvin, Ferro, Barndollar & Roberts, L.L.C. Attn: Norman A, Roberts II, Esq.

220 Elm Street, Suite 100

New Canaan, CT 06840

Dated: New York, New York November 11,2010