Luc Besson’s Embattled EuropaCorp May Find Savior With Pathé

Pathe distribution is in talks with Luc Besson’s EuropaCorp for a majority stake and potential cash infusion. Since the French director’s $177M-plus costing opus Valerian, his studio has been mired in financial problems.

“The group Pathé has expressed interest in a potential stake acquisition in the capital of the company. 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,” Pathe expressed in a statement to French media today.

EuropaCorp is still in talks with other buyers. The studio is hoping for a debt for equity swap with Pathe. A deal also depends on approval of the company’s leadership. Besson and his holding company FrontLine own 38% of EuropaCorp while Chinese investors own 28% after a $67M investment three years ago. After their investment soured, Chinese investors Fundamental Films stepped away from EuropaCorp.

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Since December, Pathe has been distributing EuropaCorp movies with the contract calling for three movies over the next three years including Little White Lies 2 and Besson’s upcoming Anna (which Lionsgate is opening stateside on June 21). No further films are in production at EuropaCorp after Anna.

EuropaCorp carries a reported debt around $270M. They’ve sold their 500-title Roissy Films library and its French TV arm for €11M.