Following the debacle of the cancellation of shooting on Jan de Bont's action thriller Stopping Power last month, the IM Internationalmedia Group has signed a deal memo with the strategic investor R Media Acquisition LLC for a reorganisation of the group's activities - including the divestment of its interest in the sales company IM Global - 'as a first necessary step' which may help it to convince existing business partners of a 'new beginning'.
According to the agreement, R Media will acquire all shares of the project companies responsible for the production of Stopping Power and has agreed to assume all liabilities in connection with the production.
'The shareholder will appoint new management of IM Stopping Power GmbH, which will withdraw the application for commencement of insolvency proceedings. A portion of the liabilities and obligations of the production assumed by R Media Acquisitions LLC will be treated as a loan to the Internationalmedia Group, which will be secured by a second priority lien in certain assets included in the film library,' an official communique said.
In addition, R Media has acquired certain development projects, in which Internationalmedia Group will remain involved as a producer, and will also grant a short-term working capital loan to the group to facilitate the necessary reorganisation of its activities.
In a first step, the Group is in talks to divest itself of its interest in its sales company IM Global, which was established last spring, but plans to continue to use IM Global as its exclusive sales agent for future productions. In addition Capitol Films Ltd. has been appointed as the Internationalmedia Group's exclusive sales agent for the distribution of existing library titles.
The communique explained that 'the objective of this reorganisation is a further reduction in personnel and related administrative costs, the optimization of the value of the film library, and a focus on the production business' and concluded that 'the commercially successful realization of productions is and will remain the crucial element. Therefore, the company needs to convince existing business partners of the 'new beginning'.'
According to the agreement, R Media will acquire all shares of the project companies responsible for the production of Stopping Power and has agreed to assume all liabilities in connection with the production.
'The shareholder will appoint new management of IM Stopping Power GmbH, which will withdraw the application for commencement of insolvency proceedings. A portion of the liabilities and obligations of the production assumed by R Media Acquisitions LLC will be treated as a loan to the Internationalmedia Group, which will be secured by a second priority lien in certain assets included in the film library,' an official communique said.
In addition, R Media has acquired certain development projects, in which Internationalmedia Group will remain involved as a producer, and will also grant a short-term working capital loan to the group to facilitate the necessary reorganisation of its activities.
In a first step, the Group is in talks to divest itself of its interest in its sales company IM Global, which was established last spring, but plans to continue to use IM Global as its exclusive sales agent for future productions. In addition Capitol Films Ltd. has been appointed as the Internationalmedia Group's exclusive sales agent for the distribution of existing library titles.
The communique explained that 'the objective of this reorganisation is a further reduction in personnel and related administrative costs, the optimization of the value of the film library, and a focus on the production business' and concluded that 'the commercially successful realization of productions is and will remain the crucial element. Therefore, the company needs to convince existing business partners of the 'new beginning'.'
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