Bac OK - Mercure R.I.P.

23/12/2002

Friday, 20 December brought good and bad news for the French film industry. The good news was the announcement by French distributor, Bac Majestic, of an improvement in its financial position. The bad : international film exporter, Mercure distribution went into receivership.
Only three months ago, Bac Majestic, France’s number one independent distributor, was on the verge of bankruptcy. Now it is about to implement a global re-structuring strategy that will guarantee its ongoing survival.
Under the terms of the draft agreement that will separate Mars Distribution (reabsorbed by StudioCanal) from Bac Distribution, Studio Canal will pay Bac Films Euros12 million and get a symbolic Euro1 in return. Studio Canal will also buy part of Bac Majestic’s film archive for Euros7million. In addition, Canal+ Group’s film studio has promised to honour the deals struck between Bac and French producers, worth the equivalent of Euros3.5 million. In return, Bac will allow the pay-TV first- broadcast rights to a number of its films, a deal that is worth Euros5.6million.
Meanwhile, Bac Majestic obtained a five-year credit line of Euros7million from banks and is continuing to dismantle its exhibition arm by selling three theatres. This move will raise much needed cash and ensure a more serene outlook for the future.
Unfortunately, the outlook is not good for independent film sales and distributor, Mercure Film. Set up by Jacques Le Glou, the man behind the global sales of titles like Harry, un ami qui vous veut du bien, Marius et Jeannette and La vie rêvée des anges, Mercure Film went into receivership in the summer.
The end came for this independent company after the French market was flooded with films that are increasingly harder to sell; with distributors reluctant to pay the high prices of the past. Mercure Distribution is an example of the uncertainty that surrounds all French independents. All matters regarding Mercure Distribution will henceforth be dealt with by Films Distribution .