DEL MAR, Calif., Feb. 17, 2004 (PRIMEZONE) -- PFEH is in advance negotiations to structure a critical financial component for motion picture productions slated for production in Fiji. These productions have been structured to utilized government approved tax incentives which provide Fijian's taax credits. Although the tax incentives can account for up to 45% of the production costs, PFEH will be structuring the balance of the financing and be receiving fees in the seven figures as well as a participation in the net revenues derived from exploitation of the films.
PFEH has identified a $13 million production that is already been approved by the Fiji government. PFEH would be responsible for structuring $6.6 million of the financing and would stand to receive fees in excess of $1 million.
PFEH is working with US investors/financiers that are looking for ways to minimize their motion picture investment risk. Under the proposed structure, even though the US investors/financiers are putting in 55% of the budget, they stand in a highly favorable and preferred recoupment position. As a result, PFEH is able to secure favorable fees in these transactions.
Although the underlying Fiji legislation has a limited life span, the Fiji Audio Visual Commission recently announced 8 new motion picture productions slated for production in Fiji within the next 12 months with combined budgets of $100 million. PFEH's goal is to be a substantial provider of financing for these types of projects.
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