CapCo to buy U.K. subsidiaries of German prodco
BERLIN — CapCo Group has agreed to provide Germany’s Internationalmedia with $150 million credit line for film production and will assume worldwide distribution for all of its future releases as part of a wide ranging deal announced Wednesday.
Internationalmedia will also hold a put option to have CapCo subsid Think Film also distribute productions from Intermedia, Internationalmedia’s L.A.-based production division, that are not financed through CapCo.
In addition, CapCo has agreed to buy Internationalmedia’s direct and indirect U.K. subsidiaries, including a part of its library.
Internationalmedia, which is currently restructuring its operations, said the sale of the subsidiaries would not have a negative impact on the group’s future productions since its main operations are located in Los Angeles, adding that the sale “enables the group to again significantly reduce overhead costs.”
Internationalmedia has an option to sell CapCo further library rights for an already agreed price. Companies declined to provide financial details of the agreement.
Internationalmedia said the pact would allow it to redeem all its liabilities by the end of 2006, adding that the additional cash flow would increase its competitiveness.
Company predicted that the production credit line and the distribution agreement would generate strong interest among potential partners and guarantee future productions.
Internationalmedia’s bottomline has suffered this year in part due to the poor performance of “Basic Instinct 2.” Company saw nine-month revenue of Euros 45.7 million ($59 million) and a loss of $4.8 million.
Internationalmedia’s upcoming releases include Richard Gere starrer “Spring Break in Bosnia,” and Andrew O’Connor’s comedy “Magicians.”