The dispute between filmdistributor Motion Picture Distribution and its former chairman Victor Loewyhas been resolved, according to a newspaper report in Canada.

Citing unnamed sources, theGlobe and Mail newspaper said Loewy had negotiated a return to the MPDexecutive suite which will see him deal exclusively with the output deal withNew Line Cinema. That deal, Loewy's trump card in the discussion, hinged on akey-man clause that allowed New Line to end its contract should Loewy leave thecompany's employ.

The paper said that whileNew Line's films represented 15 per cent of MPD's annual release schedule, thegrosses from those New Line titles have been generating - thanks especially to TheLord Of The Rings franchise -between 30 and 40 per cent of MPD's Canadian box office revenue over the pastfew years.

As for Patrice Theroux andPaul Laberge - MPD's former CEO and former general counsel respectively, whowere dismissed with cause - the paper said neither executive will be rehiredbut MPD has agreed to drop its suit against them.