In a snub to French film group Pathe, Besson prefers ceding control to Vine

Luc Besson controlled EuropaCorp ran into financial difficulties after the flop of its 2017 mega-budget sci-fi epic Valerian. The company has reportedly been in talks with potential suitors since May 2019.

Besson is not interested in the overtures of Pathe, a film group that distributes his movies in France.

Vine Alternative Investments may win EuropaCorp

Vine, which is based in New York, is also a major creditor to EuropaCorp, whose net debt stood at $181 million as at end-March 2019.

It is likely that Vine may convert its debt into equity and thereby assume control. Besson and his holding company FrontLine own 38% of EuropaCorp, while Chinese investor Fundamental Films holds 28%.

Status of the negotiations

Europa confirmed that it was in talks with Vine about an equity transaction but said there was no guarantee the talks would be successful.

“Vine has expressed interest in a potential stake in the capital of the Company,” said Europa. “Discussions are currently ongoing concerning the terms and conditions of this potential operation and the financing of the Group for the future.”

What Happened to Luc Besson and his firm?

Simply put, things went poorly for EuropaCorp during the 2018-19 financial year. Furthermore, the studio had a loss of $125 million, a 27% jump year-over-year.

The French studio did recent a six-month debt waiver from a French court. The court expected the firm to use its time to balance its books and address its debt.