Writing by Dave on Monday, 12 May, 2008 at 9:55 am

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UPDATE: Variety reports that Nailed has resumed production after SAG actors walked Friday. From what we can tell, the shut down did happen for the reasons we listed below, but there was no shoot scheduled for this weekend and funding was promptly re-routed by this morning.

David O Russell’s political satire Nailed was previously mentioned when James Caan and Russell got into an argument about how Caan should choke to death on a cookie. Caan eventually left the set, only to be replaced by Josh Brolin. There have also been rumors of Jake Gyllenhaal and O Russell getting in tussles.

But, that’s not the reason production on the flick was brought to screeching halt on Friday.

It seems that Nailed! is way behind on its payments to SAG, IATSE and the Teamsters. As a result, SAG has told its actors to leave the $25 million dollar indie until more funds are deposited in the SAG Account.

Is this normal? Not really, but for indie films, it’s not wholly unexpected. Most indies are run on various types of loans, or as one on-set tipster put it to DHD: ” “I am confident we will finish…The financing on this like most indies is based on bank loans and bridge loans. This is a matter of waiting on the bridge loan. Hopefully, it will all be resolved.”

As for now, some actors went home to spend the Mother’s Day weekend with family, but we’re told stars Jessica Beil, Jakey G, Tracey Morgan, James Marsden, and Catherine Keener are standing by waiting for the film’s financing woes to end. Brolin flew in and finished all his scenes mere days after Caan walked.

The production company running the show, Capitol Films, seems to have run into some hedge fund trouble, causing the stoppage:

David Bergstein’s Capitol Films behind the pic is troubled. In 2006, he acquired a leading UK-based international sales company which over the years had built a good reputation in the movie biz and made a wide range of commercial and critical successes, including Robert Altman’s Gosford Park. But now I’m hearing from NYC film financing circles that “a shitload of people are owed a lot of money,” in the words of one expert in the field. “I heard this week that his major financing source, a hedge fund, has shut down and left him in the lurch.”

Thursday was the last full day of shooting on Nailed before SAG shut it down.

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