Sonar Entertainment Faces Questions Amid Slowdown in Writer, Agency Payments

For months, industry insiders have been growing increasingly concerned about what appeared to be a cash-flow issue at independent studio Sonar Entertainment.

Multiple sources report that Sonar has been late on payments for writers on scripts and to talent agencies for packaging fees. The slowdown in the payment schedule has raised questions about Sonar’s ability to continue funding shows. The company has also seen a number of executive departures in recent months. A new CEO was appointed in August.

According to a source familiar with the situation, Sonar has been juggling payments to writers and agencies after its parent company, Canadian private equity firm Catalyst Capital Group tightened the purse strings in advance of the management shakeup implemented last month. With 10 shows in production, sources said Sonar took the step of delaying some writer and packaging fee payments in order to manage its cash-flow needs.