While production was rumored to kick off early 2012, it looks like Gregg McLean’s long-gestured Wolf Creek 2 will once again be seeking out investors.

Geoffrey Edelsten has launched legal action over his $5 million investment in the sequel to Aussie horror flick Wolf Creek, reports the Herald Sun. In documents filed in the Supreme Court this week, Mr Edelsten has flagged his intention to have rescinded the investment deed he signed for the sequel. He says he would never have invested $5 million had he known he was “by far and away” the biggest single private investor. The film has a $13.2 million budget.

Mr Edelsten says in an affidavit that only $300,000 of this was from other private investors, the balance coming from government grants.

He says the amount coming from government agencies was not mentioned in his first meeting with the film’s director, and government support did not provide him with the “same comfort” as private investors.

Emu Creek Pictures, of which Greg McLean is a director, sent Millennium Management, of which Mr Edelsten is director, a statutory demand last month for payment of $4.923 million.

Millennium has now taken action against Emu Creek and is asking the Supreme Court to set aside the statutory demand. “The plaintiff wishes to investigate irregularities with the investment deed and PIA (private investor agreement),” Mr Edelsten says in his affidavit.

“Further, based on the misrepresentations about the other private investors and the tax deductibility of my proposed investment, I believe that the plaintiff has a complete defence to the alleged debt.”

Mr Edelsten says in his affidavit he intends to issue separate action to rescind the investment deed.

Wolf Creek 2 would see John Jarratt reprise his role as deranged killer Mick Taylor.

Mr Edelsten revealed in August he was backing Wolf Creek 2.

“I was looking for a film with international appeal and the script for Wolf Creek 2 blew me away. I loved the first film, but this will set the bar at a new height,” he said at the time.

“It’s bigger, badder, more terrifying and action-packed than the first film. After reading the script it stuck with me for weeks, and meeting Greg and Matt (producer Matt Hearn) sealed the deal.”

In a statement late yesterday, Emu Creek Pictures denied Mr Edelsten’s allegations.

“We intend to fight the allegations in the Supreme Court of Victoria and are confident of victory,” the statement said.

“The production company has been clear, thorough and transparent in all its dealings with Geoffrey Edelsten and Millennium Management from the outset with Screen Australia overseeing the contracting process for the film.”

The dispute over the Wolf Creek 2 investment is due to be heard in February.