Page 2 / MORE ART NEWS, REVIEWS AND THINGS TO DO : Flame Fanned to Replace Failed O.C. Film Festival : Movies * Business leaders and Chapman educator would like a nonjuried event geared toward the public.

About a dozen area business leaders and a representative from Chapman University’s film department took their first step toward creating a new Orange County film festival after the collapse earlier this month of the Newport Beach International Film Festival.

“There is a strong desire,” said Bob Bassett, dean of Chapman’s film school who met with others Wednesday to discuss prospects of continuing a film festival. “The issue right now is what form [a new festival] will take.”

Though Bassett said it is too early to discuss specifics, he said the group would like a new festival--with a new name--to kick off next spring and be geared toward moviegoers rather than set up as a juried competition.

“This group is going to move ahead,” he said. “And there’s definitely going to be a film festival.”

The Newport Festival wasn’t Orange County’s only festival showcasing foreign and independently made films. The third annual Laguna Beach Film Festival will be held Oct. 1 through Oct. 3, with screenings of more than 25 features, short subjects and documentaries for all ages at the Festival of Arts/Forum Theater in Laguna Beach.

Meanwhile, problems continue for Jeffrey S. Conner, founder and executive director of the Newport Beach festival, who laid that event to rest earlier this month by filing for Chapter 7 bankruptcy.

Since Conner’s filing at a U.S. Bankruptcy Court in Santa Ana, some creditors and supporters of the event contend Conner was to blame for mismanaging the festival.

“It was like he robbed Peter to pay Paul,” said one creditor, who asked not to be identified.

Others described Conner as both “a visionary” and a person who appeared nervous when dealing with financial matters.

“He certainly had the making of something that looked legit,” said John Hull, a local printer to whom Conner owes $24,000, according to court documents.

Conner could not be reached for comment but gave a statement Wednesday through a spokesman.

“There’s been a great deal of misperception as to what has occurred,” said attorney Jonathan Michaels, who has represented Conner on other matters. “At some point in the future, [Conner] looks forward to being able to set the record straight.”

Conner listed $191,900 in liabilities and only $10 in his pocket when he filed for bankruptcy.

Much of the debt listed in the court file amounts to a handful of previous judgments against him--two of which date to 1993, before Conner founded the festival--as well as a rash of new judgments from earlier this year stemming from the festival.

Also listed is a $10,800 outstanding Diners’ Club bill, $9,500 owed for back taxes and about $36,000 allegedly owed to Alexis Golf, a corporation based in Carson City, Nev.

According to court documents, Alexis says Conner reneged on a promise to hold a golf tournament sponsored by Alexis in association with last year’s festival. When the tournament never materialized, Conner and his associates failed to return Alexis’ money, according to court documents.

Attorneys for Alexis didn’t return calls regarding specifics. But the lawsuit, filed May 3 in Orange County Superior Court, said Conner made personal use of the Alexis’ funds.

Some of those who dealt with Conner said they weren’t surprised by the bankruptcy.

“He was a guy with good intentions,” said John Zylstra, president of J&M; Press in Irvine, who said Conner owes him $13,900. “He just had poor business skills.”

Many creditors, including Zylstra, said they continued to deal with Conner because they wanted to help the fledgling nonprofit festival put Newport Beach on a par with Sundance, Telluride and Toronto.

“Everyone talks in Hollywood about what a joke it is to be behind ‘The Orange Curtain,’ ” said Barbara Sted, co-owner of Hollywood Film & Video and a Costa Mesa-based mortgage company listed among Conner’s creditors. “And now he’s proven that.”