COMPANY TOWN ANNEX

MGM Files Separation Suit: Metro-Goldwyn-Mayer has sued producer Arnon Milchan, his New Regency Productions and other offshore companies for breach of contract and fraud in Los Angeles County Superior Court. The studio claims Milchan, the co-producer of its film “Six Degrees of Separation,” reneged on paying $8.05 million for foreign distribution rights as outlined in its agreement. “MGM is going to be like a heat-seeking missile on Mr. Milchan’s assets,” said Pierce O’Donnell, MGM’s attorney. Milchan’s representatives say the movie was part of a bigger multi-picture agreement with the studio, which they say MGM and its owner, French bank Credit Lyonnais, are reneging on.