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France’s MK2 creates production coin co.

Gallic production house MK2 has created a new investment company to boost film production funding.

MK2 topper Marin Karmitz, the producer of Krzysztof Kieslowski’s “Three Colors” trilogy, now has some $ 5.2 million in fresh investment capital to channel into production.

The new company, Sofilmka, is backed by MK2 and banks United Intl. Cinemas and other exhibitors in the vast GAN insurance group.

MK2 exec Veronique Cayla has been named president of Sofilmka.

“The advantage of creating a Sofica (tax shelter structure for film financing) is that it gives us access to funds at a far lower rate than if we had to borrow on the open market,” Cayla told Daily Variety. The investment funds allow private investors a substantial tax write-off in the first year they invest.

MK2 produces or co-produces around eight pix every 18 months and has its own distribution arm, MKL, and the 14 Juillet hardtop circuit in Paris. The group recently acquired four new screens in Paris’ fashionable Latin Quarter.

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