New Line Cinema has filed an arbitration claim against Kevin Costners company under which Horizon was produced over alleged breaches to a deal for the period Western, The Hollywood Reporter has learned.

Horizon Series, Costners loan-out firm, is in a standoff with New Line over its cofinancing agreement, a source says. After City National Bank initiated arbitration proceedings against both companies, New Line responded by filing a crossclaim seeking repayment from Horizon Series as part of its defense.

Under the deal, New Line and Horizon Series were each required to repay a portion of the financing. By New Lines thinking, it covered the portion its partner didnt pay but City National Bank took the position that its owed more. When asked, New Line declined comment. City National Bank and Territory Pictures, Costners production banner, didnt respond to requests for comment.

Costner designed Horizon: An American Saga Chapter 1, which he directed, co-wrote, starred in and partly financed, as the first of four installments. It hit theaters last June as part of an unusual rollout plan to release the sequel just seven weeks later.

That idea was scrapped after the movie, which sports a $100 million price tag, failed to deliver at the box office, making $12 million in its opening weekend and roughly $38 million overall. In a bid to allow more time to grow the audience for Chapter 1, Territory Pictures and New Line opted to release the film on premium video on-demand and Max while it was still in theaters while holding the sequel.

As of last year, Chapter 3 wasnt fully financed but already begun filming, with the plans for Chapter 4 to follow sooner rather than later. Costners gamble was among the reasons why financing for the sprawling story didnt come from a major studio (Warner Bros. is distributing the film for a fee) but from himself and a group of undisclosed investors. Under their deal, Costner deferred his fees, mortgaged his Santa Barbara waterfront property and put millions of his own money toward the venture, he told THR last May. To realize the passion project, he added that his personal investment in the film is $38 million or well above $50 million.

The fate of Chapter 2 may be all the more confounding given that Horizon ended with an unusual lengthy extended montage of scenes culled from the sequel a sequence that appears to serve both as a trailer for the next film and, perhaps, as a reel to investors who may be interested in joining Costner on his Western journey.

I need some more money I do. I need some of these big billionaires, with fing boats from here to here who are fond of telling people theyre billionaires to come with me and make a movie, Costner toldTHRs Awards Chatter podcastlast year in Cannes. I dont have the money they have and Ive already made two of em. Where are you rich guys?