A creditors meeting was held on Friday, March 18th to discuss the future of Irish-based production outfit Magma European Scripting House (MESH). Approximately 20 of the body’s 60 creditors met with the aim of appointing a liquidator for the company however none was appointed. A liquidator is now to be set at a meeting on April 12th.
A creditor present at last week’s gathering has reported that Magma Films’ CEO Ralph Christians and his legal team informed the assembled creditors that they were not in a position to appoint a liquidator at that moment. Talking to IFTN, Christians explained the reason behind this move, saying: ”It was for formal reasons that we didn’t name a liquidator at the meeting. We were not prepared in that I only met with our chosen liquidator 30 minutes prior to the meeting.”Christians further explained that the meeting had been at the request of the MESH board members who decided to to appoint a liquidator as a result of Irish banks not being able to support Irish businesses any more as a result of the Irish financial crises. Responding to questions from the assembled creditors at the meeting on March 18th, Christians and his team confirmed that MESH is no longer receiving state funding.
Those present at the meeting represented approximately 60 creditors who include Anglo Irish Bank. The most recent financial accounts available for MESH see the company with debts of €3.4 million; €510,000 million of which is through bank loans, €1.8 limited recourse loans from the Irish Film Board and other institutions and €415,000 comprised of shareholders’ loans. Christians tells us that the group has assets of €5.4 million and tells us that 80% of the money is owed to MESH shareholders and that no money is owed to film crew members.
A statement sent to IFTN from Ralph Christians in recent days states that: “MESH (Magma European Scripting House) was founded 15 years ago in Galway to create and produce long running television series in animation and live action. Five years ago the company was restructured and all productions were run through Magma Productions Ltd and its subsidiaries and through Special Purpose Companies (SPC) to access the tax incentive scheme Section 481. MESH became a holding company for older rights.”
Speaking with Screendaily on March 15th, the Irish Film Board clarified that it will not suffer any financial losses from the appointment of a MESH liquidator. “To safe guard all investments the Irish Film Board makes, the IFB takes a security over a project and an interest in the project is registered with the company office on the rights of that project and any future recoupment on that project,” an Irish Film Board spokesperson explained.
Magma Productions’ current projects include the second and third instalment of crime series ‘Jack Taylor’ and animation, ‘Ooops, Noah is Gone!’ In his statement, Christians further stated that the appointment of a liquidator for MESH would not affect theses productions: ”This has no effect on the current productions being produced by Magma Productions namely Jack Taylor and The Legends of Valhalla - THOR,” it notes. He also pointed out the financial contributions that MESH has made to the Irish economy, saying: "MESH has contributed over 100 Million to the Irish economy and the economy in the West of Ireland in the last two decades. Most of this money was foreign investment."
Christians yesterday told IFTN that he is confident that he will announce a liquidator for MESH at the meeting on April 12th.
