Pathé, France’s most successful independent distribution outfit, is in discussions to acquire a stake in Luc Besson’s financially ailing EuropaCorp, which revealed the negotiations Wednesday. The two companies have already been collaborating on domestic distribution of EuropaCorp movies in France.
“The group Pathé has expressed interest in a potential stake acquisition in the capital of the company,” EuropaCorp said in a statement. “This expression of interest, non-binding, is subject to the realization of several conditions precedent, in particular an agreement on the restructuring of the existing debts of the group.”
EuropaCorp, whose library includes successful franchises such as “Taken,” “Taxi” and “Transporter,” has a debt load of about €230 million ($270 million) and has been looking for a white knight for some time. It previously had unfruitful discussions with several companies such as Netflix, according to several sources. Earlier this month, it was granted a six-month debt waiver from a French commercial court to give it more time to stabilize its finances.
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“The board and the management of EuropaCorp considered that the safeguard proceeding would enable the negotiation of terms of a financial stabilization of the company via the restructuring of its debt and equity, while continuing its activity in peace,” EuropaCorp said.
Last December, the company signed a distribution deal with Pathé for the latter to handle the French release of three EuropaCorp movies per year over the next three years, notably “Little White Lies 2” and Besson’s “Anna.”
Last year, Pathé distributed France’s top two local movies, “The Magic Tuche” and “La ch’tite famille.”