You will be redirected back to your article in seconds

Cash woes cast doubt on Behaviour’s future

Canuck company arranges financing

MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business.

Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative financing, there is no certainty as to the continuity of the operations of the company.”

Behaviour has been bleeding red ink almost constantly since software entrepreneur Richard Szalwinski bought the company (then called Malofilm Communications) three years ago and Behaviour execs have been desperately trying to secure a new financing arrangement for the past year.

At the same time, the company has been selling off most of its core assets. Two weeks ago, Behaviour sold its digital studio to Tube Images of Montreal for C$850,000 ($587,000) and, last summer, it sold its Canuck film-distribution operation to Industry Entertainment (now called Seville Pictures). The only major asset left in the Behaviour stable is Los Angeles-based international film sales agent Behaviour Worldwide.

Also, Behaviour is trying to delay the release of its year-end financial results. The company has filed with the Canadian securities commissions to apply to be exempted from having to file its annual results on the date required by securities legislation. Behaviour is awaiting a decision from the securities commissions.

In early February, Behaviour announced that it expects a significant net loss from discontinued and continuing operations for the year ended Sept. 30, including losses for the fourth quarter. The company recently reached an agreement in principle to extend its revolving credit facility for its U.S. subsidiary, Behaviour Worldwide, to March 10.

More Biz

  • Katie Vinten

    Katie Vinten Strikes New Deal With Warner Music, Including Label With Justin Tranter (EXCLUSIVE)

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

  • Women in Hip-Hop Industry Get the

    Women in Hip-Hop Industry to Get the Spotlight at A3C Conference

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

  • Streaming Placeholder

    RIAA Issues Bullish Mid-Year Report: Revenue Up 10%, Streaming Now 75% of Total

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

  • Arista Records Announces Three Key Hires

    Arista Records Announces Three Key Hires

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

  • U.K. Talent Agency Artists Partnership Enters

    U.K. Talent Agency Begins Developing Film and TV Projects, Launches New Slate (EXCLUSIVE)

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

  • Sundance Film Festival Placeholder

    Ticketmaster Issues Statement on Scalper-Collusion Accusations

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

  • ESPN App

    Disney Says ESPN+ Streaming Service Notches More Than 1 Million Subscribers

    MONTREAL — Cash-strapped Canadian film company Behaviour Communications is running into big-time financing trouble and, for the first time, the Montreal-based company is hinting that it may not be able to stay in business. Behaviour announced Tuesday that it has been unable to secure alternative financing arrangements and that “in the absence of such alternative […]

More From Our Brands

Access exclusive content