Canadian film and television producer Telescene Film Group has been pulled back from the brink of bankruptcy (ScreenDaily, December 4), thanks to a joint venture with another Montreal-based industry player, animation house Cinegroupe Corp.
Under the terms of the arrangement, CineGroupe will initially control 80% of the new company with Telescene holding 20%. CineGroupe will fund the venture for the first two years.
The new company, which will be based in Montreal with offices in LA, will become the live action arm of CineGroupe. Telescene will continue to exist and own its library. However the new company will have the right to distribute and exploit rights as they become available; as well, it will have right of first refusal on a sale of the library. At the same time, CineGroupe will transfer rights to its live-action development slate to the new company.
The first production at the new venture will be the third season of Big Wolf On Campus, a half-hour teen comedy currently telecast on the Fox Family Channel in the US and on YTV in Canada.
The deal is contingent upon a number of conditions including all corporate authorisations, approvals from all regulatory bodies and secured creditors.