25/09/2002

Alarm bells are ringing in the French film community after news that independent distributor, Bac Majestic is on the verge of bankruptcy. Directed by Jean Labadie, Bac Majestic announced their re-launch last July after a cash injection by Belgian financier, Michel Litwak and the company’s subsequent re-capitalisation. Last week’s decision by the Belgian financial sector’s official watchdog authority, however, to stop the operation because of a lack of transparency caused a wave of panic in the film world that now fears a negative knock-on effect. Once again, Canal+ finds itself at the centre of this storm because of the close ties its production arm, StudioCanal , has to Bac Majestic. The two companies are partners in Bac Distribution (80 per cent owned by Studio Canal and 20 per cent by Bac Majestic). According to the very latest information, a divorce is allegedly being negotiated that will give Studio Canal total control of distribution whilst guaranteeing Bac Majestic’s survival. This optimistic scenario is likely to become reality quite soon. Given the turbulence that Vivendi Universal, who own Canal Plus, are currently experiencing, Canal Plus has no desire for ulterior financial complications caused by Bac Majestic.

(Translated from French)