THE company behind a proposed multi-billion pound theme park dubbed the 'Dartford Disneyland' is being taken to court by Hollywood studio Paramount.

London Resort Company Holdings (LRCH) had hoped to build the controversial attraction on the 372-acre Swanscombe Peninsula on land opposite Thurrock. Grays and Tilbury were among Thames towns expected to benefit from an influx of visitors to the region.

First announced back in 2012, the huge park was envisioned to feature rollercoasters, water parks, hotels and live entertainment venues and would have been at least three times the size of any other theme park in the UK. 

However, after various planning snags and racking up debts of £100m, the proposed park now faces a battle to stay alive.

LRCH has been dragged into a High Court legal dispute with American streaming giants and former collaborators, Paramount - one of the creditors which had originally lent its name to the park's attractions. 

But now, an insolvency judge has found at least three 'serious and irremediable' breaches of LRCH's agreement to pay creditors, including Paramount. 

The Hollywood producers - behind some of the biggest and most famous films of all time including Titanic, the Indiana Jones films and The Godfather - had originally lent its name and intellectual property (IP) rights to the proposed park. 

This would have enabled LRCH to use the names of its movies, such as Star Trek and the Mission: Impossible films, for its attractions. 

But Paramount later reneged on this agreement, telling the High Court in October that LRCH had not adhered to their obligations under a Company Voluntary Arrangement (CVA) — a way for financially impacted companies to pay off their debts over a fixed period and address issues without folding — agreed in April last year. 

LRCH had proposed a CVA based on a debt-equity swap in which the debts owed to unsecured creditors would be cancelled and replaced by shares in the company, according to details of the judgment published last week.

This arrangement was approved, despite the opposition of Paramount and other creditors who believed the prospect of any financial return to be highly remote.

Paramount told the court LRCH had breached fundamental terms of the CVA by, in its view, ceasing trading and disposing of key parcels of land necessary for their theme park project without informing creditors.

It pointed to the fact that in March, LRCH's long-term chairman and director, Steven Norris, resigned and is yet to have been replaced. 

One of a number of designs put forward for the theme park.

This followed the resignation of Pierre-Yves Gerbeau, the company's ex-CEO, who resigned in December 2022 and hadn't been replaced.

Funds of around £607m required to move their project forward, which LRCH promised in the CVA proposal, had also not been forthcoming and all its websites had been shut down.

Streaming giant Paramount argued the CVA needed to be terminated with haste to prevent the company from disposing of more assets to put them 'out of reach' of its creditors. 

The High Court heard the project was largely bankrolled by Dr Abdulla Al-Humaidi, a Kuwaiti Tycoon and former chairman of Kent football club Ebbsfleet United FC. 

Dr Al-Humaidi is said to be embroiled in financial difficulties and disputed fraud allegations, and served as director until his recent bankrupcy.

Insolvency Judge Sally Barber said it was 'regrettable' that, in the face of these breaches by London Resort, supervising solicitor Mr William Batty had not terminated the CVA despite requests that he do so.

Judge Barber also ruled that the transfer of a plot of land in May was a material change to London Resort's business which the CVA supervisor had no prior notice of.

The judgment notes: "The freehold land, being an integral part of the site on which the theme park is to be built, was not only presented in the proposal as the company's only asset but was obviously central to its business and therefore to the CVA.

"Without the site, there was no land on which the theme park could be built."

The court ruled there had been an 'irremediable breach' of the terms of the CVA and directed Mr Batty to issue a certificate of termination.

A minimum of two further hearings at the High Court will take place in the New Year to decide London Resorts' fate. 

However, the company is hoping to place itself in administration before then, with another court hearing in January to determine whether or not this can be achieved.

Bosses at the company believe this measure would offer the best chance of delivering the project in the future and are committed to fighting their corner every step of the way.

The fate of the huge theme park now hangs in the balance as it's understood that if the company is made insolvent, the government could finally pull the plug on its controversial Nationally Significant Infrastructure Project (NSIP) status.

It was given its NSIP status by David Cameron's Tory government back in 2012, which had the potential to speed up the planning process.

NSIP status is given to major projects such as airports, power stations and major roads to fastrack the planning process by taking decision-making out of the hands of the local authority and into those of the relevant minister of state. 

Once listed as an NSIP, the process then moves towards the ultimate goal – securing a Development Consent Order, signed off by the government, which gives the go-ahead for the project to be built.

LRCH got halfway through this lengthy process before sensationally withdrawing its application in March 2022, blaming Natural England's decision the previous year to give much of the area Site of Special Scientific Interest (SSSI) status. 

Whilst SSSI status doesn't block development, it does require concessions to be made.

Natural England made the move due to the area's grassland, wetlands, birds, and invertebrate species - including one of the rarest types of spiders in the country.

A deal LRCH had with the Port of Tilbury to allow visitors to park on the Thurrock side of the Thames Estuary and be ferried to the theme park also fell apart as the port followed its own interests including developing the Tilbury2 roll-on, roll-off terminal and its commitment to becoming a Freeport.

LRCH, which owned the freehold on the 372-acre former cement works site, along with 39 acres of the Manor Way Business Park - Swanscombe Development LLP - was put up for sale in July.

Despite the setback, London Resort bosses insisted the dream was not dead and revealed investors acting on their behalf had expressed interest in taking over the land.

In October, Dr Al-Humaidi said the long-running saga of the proposed Dartford Disneyland had 'destroyed' his life. 

He said it had 'ruined my reputation and left me bankrupt' and labelled the nation's planning system as 'broken'.

LRCH had previously had the option to buy the site from Swanscombe Development - a 50/50 joint venture between Aggregate Industries and Anglo American International Holdings.

But this option expired in 2022 and has not been renewed since.

The option to buy the freehold of the land had cost LRCH some £4m over the years - all of which was non-refundable.

It was estimated that the land was worth well in excess of £100 million during the duration of the option period.

However, that price is expected to have dropped significantly following the designation of much of the peninsula as an SSSI.

The hearing for the CVA challenge has been listed for April with the next court date for the firm's administration hearing scheduled for next month.

LRCH declined to comment due to ongoing court proceedings.

Paramount has been approached for comment.