Someone I know and who will remain anonymous called me the other day looking for P&A funding in the amount of 15MUSD for their completed film that has A list talent attached to the project. I asked him who was distributing the film and he replied that it was Sony. My next question was WHY did he need to acquire P&A funds when this film was independently financed to the tune of 22MUSD? Was SONY not picking up that tab? Why would anyone raise 22M if they knew beforehand that the studio was not taking any risk?
The answer...THE CREDIT CRUNCH. Sony had no money of their own to put into the P&A fund.
Someone's either lyin' their ass off or some company is really hurting. In any case this film should not have been made without bullet proof contracts from the producers and/or the distributor. I can tell you now....that's 22MUSD in the toilet.
FILM INVESTORS BEWARE!
Do your due diligence and don't put money up without the other side putting some skin in the game.
credit crunch my ass....