November 25, 2017 / 11:01 AM / a year ago

Luc Besson's EuropaCorp considers options to raise cash, cut debt

FILE PHOTO - The logo of EuropaCorp, of which French film director Luc Besson (not pictured) is co-founder and Chairman, is seen at the inauguration of the 'Cite du Cinema' movie studios in Saint-Denis, near Paris, September 21, 2012. REUTERS/Charles Platiau

PARIS (Reuters) - EuropaCorp (ECP.PA), the loss-making film production company founded by French director Luc Besson, said it was considering “different options” to raise cash, reduce its debt and cut costs.

After a box office disappointment for its big budget sci-fi movie “Valerian and the City of a Thousand Planets”, EuropaCorp is reviewing a recapitalisation or a restructuring to cut the cost of its debts, it said in a statement on Saturday.

It will also weigh cost cuts and the sale of non-strategic assets in areas such as post-production or its film catalogue.

“These reflections are still preliminary at this stage and no concrete transaction can be announced,” it said.

EuropaCorp said its strategy was to refocus on its core business to produce two to three English language feature films each year, and two French language films.

Earlier this month, the group said that CEO Marc Schmuger would leave and that founder Luc Besson, best known for directing movies such as “The Fifth Element” and “Le Grand Bleu”, would assume interim CEO responsibilities.

EuropaCorp had a net loss of 119.9 million euros in its fiscal year 2016/17 ended March 31, 2017. It has warned of another loss for full year 2017/18

Reporting by Dominique Vidalon; editing by Alexander Smith

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