LONDON -- Crew working on pre-production for John Madden's "Tulip Fever" have been told the project could shutter at the end of this week, unless the producers get a positive signal from the British government about the status of its tax financing deal.
"Tulip Fever," starring Jude Law and Keira Knightley, is co-financed by DreamWorks and Miramax with tax fund Inside Track putting up a third of the $45 million budget.
But the government's shock announcement Feb. 10 of a sudden change in tax law forced the immediate suspension of Inside Track, along with rival tax fund First Choice.
That left around 25 upcoming movies, indie and studio-funded alike, with a gaping hole in their budgets. Hardest hit were the half dozen projects, including "Tulip Fever," already into full pre-production.
Industry lobbyists are pleading with the Inland Revenue, the government's tax collection arm, for urgent confirmation of whether Inside Track and First Choice will honor their commitments to these imperiled projects, where significant pre-production coin has already been spent.
"Tulip Fever" producer Alison Owen gave her crew a week's notice Friday, and says that unless she gets the greenlight from the Inland Revenue by today she will either have to find alternative financing or shut the pic down.
"Tulip Fever" is due to start principal photography April 23. The strike cost is understood to be in the region of $6 million.
The other projects also deep into pre-production include Regis Wargnier's $28 million "Man to Man," which started shooting today; The Libertine," starring Johnny Depp, due to shoot Monday; Nick Willing's "River King," scheduled for early March; Gaby Dellal's $7 million "On a Clear Day," set to shoot April 5; and Fernando Meirelles' "The Constant Gardener," scheduled for the end of April.
The producers of "The Libertine" insist they will go ahead with their shoot, whether or not their tax equity deal from First Choice stands. But they may push the start date back a week to give extra time for re-financing.
One pic that appears to have escaped unscathed is Working Title's "Nanny McPfee," starring Emma Thompson. Pic is also set for production in April, and was in negotiations for co-financing from Inside Track. But Universal had already agreed to fully finance the movie with or without the tax deal, and so it is going ahead regardless.
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