Luc BessonEuropaCorp, which is still in bailout talks with Vine Alternative Investments, recorded another loss of $ 25 million for the fiscal year ended Sept. 30.
This follows a loss of $ 99 million in the first half of the fiscal year announced in July and an exceptional depreciation of its film distribution business in the United States. Net debt stands at $ 182 million.
The besieged studio said talks with US investment fund Vine were still ongoing, after French film group Pathé pulled out of the talks.
The vine has gone around the Taken and Valérian and the City of a Thousand Planets producer to save him from bankruptcy attorney after a series of business failures and Besson’s personal turmoil.
Besson’s major action franchises – Taxi, Taken and Carrier – gave way to box office disappointment of its $ 210 million sci-fi epic Valerian, which only grossed $ 225 million worldwide. His last, Anne, seen as a return to form in the footsteps of Scarlett Johansson-starrer’s spy Lucy, bombed at the box office, where it only grossed $ 7.5 million for Lionsgate in the US
The company said talks with Vine were suspended at the arrangements of EuropaCorp’s Cité du Cinéma studio north of Paris. Any rescue plan “will allow the group to continue its activity with a lean debt structure”.
New York-based Vine, which acquired a controlling stake in Village Roadshow in 2017, is one of EuropaCorp’s major creditors. The deal on the table would see Vine convert EuropaCorp’s debt into company stock. They have until May 13, 2020 to complete their discussions.
Besson has also been plagued by personal problems after being accused of rape by actress Sand Van Roy in May 2018. This case is under judicial review after being dismissed by police, and the director is went on television to defend himself in October.
Sales were halved to $ 45.2 million, while they hit $ 14.6 million from $ 10.4 million year on year. “This profit margin is mainly due to a high level of profit margin on the operation of the catalog”, explained the producer and distributor of cinematographic works and television series.
Cash flow slowed to just $ 12 million, from $ 40 million from the studio, which has not had a movie in production since. Anne, had no product to deliver. His only film was the French language Little White Lies 2, which saw 2.8 million tickets sold in France. And given the ongoing restructuring, there was virtually no investment over the period.
Revenue on the TV side was also down, to just $ 3.4 million from the show’s last six episodes. Taken series at NBC, which ended in the first half of the year.
The company cited overhead costs down nearly 30 percent, reflecting company-wide layoffs that took place during the year and began last January.