Spielberg is standing between the resort and an April 1, 2010, deadline to refinance $1 billion worth of debt. The reason? Beginning next June, Spielberg, who has held a consulting contract with Universal for more than two decades, can at any time demand a buyout that would cost the resort hundreds of millions of dollars. And the contract is written so that Universal is obligated to pay Spielberg his money before it pays anyone else
But reaching an agreement may not be easy. Some of Universal's bondholders privately fear the talks could be undermined by hard feelings remaining from a distribution deal between Spielberg and Universal's movie studio that collapsed earlier this year. Spielberg wound up signing a distribution agreement with the Walt Disney Co. instead.