×
You will be redirected back to your article in seconds

Aurum angst for Alliance

Co. filed amended business acquisition report Friday

Motion Picture Distribution, an income trust controlled by Toronto-based Alliance Atlantis, has initiated arbitration proceedings to try to resolve financial issues related to the 2004 acquisition of Spanish distrib Aurum Producionnes.

Alliance execs said the amounts being claimed represent a significant portion of the C$55 million ($47 million) purchase price, but the company would not provide an exact figure nor elaborate on the exact nature of the dispute.

The Canuck company is Canada’s leading film distributor and also releases pics in Spain and England.

It filed an amended and revised business acquisition report with Canadian regulators on Friday that related primarily to adjustments to the financial statements for Aurum for the two years preceding the acquisition.

Alliance execs said the financial statements were being adjusted to reflect liabilities and certain related-party transactions that were improperly accrued.

These issues were not discovered by the Canadian company during due diligence prior to the acquisition.

“If someone misrepresents what they’re showing you, it’s very difficult to detect it in due diligence,” said Andrew Akman, veepee of corporate development at Motion Picture Distribution.

But Akman said his company will definitely not abandon Aurum.

The Alliance Atlantis income trust has referred the dispute to the London Court of Intl. Arbitration, which is expected to rule on the case sometime this year.

The problems at Aurum come at a bad time for Motion Picture Distribution, which had a rough year as a result of box office woes in Canada, Spain and England. Revenue is down mainly due to the lack of blockbuster titles such as the “Lord of the Rings” pics, which had boosted the company’s numbers for the past few years.

But Akman is confident the income trust’s financial numbers to be released in February will be more upbeat thanks to the strong perf in Canada of such pics as French-language hockey drama “Maurice Richard” and “Brokeback Mountain.”

More Scene

  • Andy CohenThe Shops and Restaurants at

    Andy Cohen to Receive Vito Russo Award at GLAAD Media Awards

    Mazel, Andy Cohen! Bravo’s late-night talk show host is set to receive the Vito Russo Award at the 30th annual GLAAD Media Awards on May 4 in New York City. Sarah Jessica Parker will present him with the award, which is named in honor of GLAAD founder Vito Russo. The annual award goes to openly [...]

  • Variety TV Summit Europe

    Variety TV Summit Europe Coming to London on June 13

    Variety’s TV Summit Europe will coincide with London Tech Week this year, returning to the city on June 13. The international conference will be held at the Royal Lancaster and is co-produced by global events company Informa’s KNect365 division, the world’s largest business-to-business organizer. The one-day summit will focus on the intersection of content and [...]

  • David Furnish, Bryce Dallas Howard, Taron

    'Rocketman': Paramount Previews Footage of Elton John Biopic

    “Rocketman” is ready for lift off. Paramount Pictures threw a cocktail party Monday night to preview 15 minutes of the upcoming Elton John biopic, set for release on May 31, at the Troubadour in Los Angeles, the legendary rock club where John made his U.S. debut nearly 50 years ago. The footage featured pieces of [...]

  • The CalArts REDCAT Gala 2019 Honoring

    Pixar's Pete Docter Honored at CalArts REDCAT Gala

    Pixar’s Pete Docter reminisced about his days as a student at CalArts on Saturday night at the 2019 CalArts REDCAT Gala, where he received the Distinguished Alumni Award. For the wide-eyed boy from Minnesota, where life was more routine, attending CalArts “was a free-for-all. It was eye-opening in a lot of ways,” he recalled. “But [...]

  • Sasha Pieterse, Eli Brown, Sydney Park

    'Pretty Little Liars' Spinoff Unexpectedly Coincides With College Admissions Scandal

    It was a case of art imitating life at Saturday night’s Hollywood premiere of “The Perfectionists” — Freeform’s “Pretty Little Liars” spinoff about a scandal involving college students striving for excellence by any means necessary. The TV show’s debut was coincidently preceded by a real-life college scandal involving Hollywood celebrities who allegedly didn’t let a [...]

  • Keira Knightley'The Aftermath' film screening, Arrivals,

    Keira Knightley Talks 'Aftermath,' Alexander Skarsgård and Another Itchy Wardrobe

    The reigning queen of period pieces, Keira Knightley, knows a thing or two about historical clothing. “Lining. Lining is always important,” the Oscar-nominated actress playfully advised on Wednesday at the premiere of her post-WWII drama “Aftermath.” “If you get a lot of itchy stuff always put lining in it. I have learned that from having [...]

More From Our Brands

Access exclusive content