Estate of Denial:  “Proceeds from the sequel to Mario Puzo’s novel “The Godfather” published this week will be put in escrow while Paramount Pictures and the late novelist’s estate pursue litigation over the publishing rights.

An interim agreement allows publication of the novel to go forward, pending resolution of this matter,” Richard Kendall, a lawyer for Los Angeles-based Paramount, said at a hearing today in Manhattan federal court.

Paramount, a unit of New York-based Viacom Inc., sued Anthony Puzo, Mario’s son and the executor of his estate, in February to prevent the publication of a third sequel to “The Godfather,” claiming that it wasn’t authorized.”