Canuck trio tripped up

Distrib fires execs

By ADAM DAWTREY

LONDON -- Victor Loewy and Patrice Theroux have been ousted as chairman and CEO, respectively, of Motion Picture Distribution, the leading Canadian indie distrib that was spun off from Alliance Atlantis three years ago and also owns Momentum Pictures in the U.K. and Aurum in Spain.

Loewy, Theroux and Paul Laberge, exec VP of corporate development and general counsel, who also was fired, intend to move immediately to launch their own competing Canadian distribution outfit.

According to a company statement, Loewy's departure could result in the termination of MPD's output deal with "one of its principal suppliers."

Company did not disclose the identity of the supplier, but it's an open secret that MPD'sCanadian distribution deal with New Line Cinema has a key-man clause involving Loewy.

A distrib created by Loewy and Theroux would thus be well placed to secure an output deal with New Line. Insiders said Loewy is also confident of taking his relationship with the Weinstein Co. to a new outfit, as the Weinsteins have not yet formally signed their output deal with MPD.

No explanation was given for the sudden exits of the two execs who have spearheaded the business since its inception.

Company issued a statement that the board had concluded "a management change was necessary and in the best interest" of the business.

Loewy and Theroux are understood to have spent recent months working on a management buyout bid for the company. They reportedly had lined up two potential backers and had approached the board to open discussions.

But the board did not respond positively. At a board meeting Wednesday, it declared it had lost confidence in management and ordered Loewy to fire Theroux and Laberge.

Loewy refused and resigned. Theroux and Laberge were then promptly fired.

The company statement said Loewy "stepped down," while Theroux "has left the business."

Insiders say they are not considering a hostile takeover bid for MPD.

John Bailey, an independent board member of the company, has been appointed interim chief exec of MPD. Vice chairman David Lazzarato, who also serves as exec VP and chief financial officer of Alliance Atlantis, has become board chairman.

Bailey, formerly CEO of Famous Players and a senior exec at Paramount, has made clear that he plans to apply for the CEO post on a permanent basis.

"We have a talented and capable group of more than 200 professionals across three territories who have forged longstanding relationships throughout the industry," Bailey said. "I look forward to working together with the management team and our customers and suppliers to ensure a smooth transition."

If Loewy and Theroux proceed with the launch of a rival outfit, there will likely be a bitter battle over both suppliers and the key execs left behind at MPD, whose loyalties are likely to be tested in the coming weeks.

Alliance Atlantis spun off its theatrical, video and TV distribution operations three years ago into MPD, in which it retains a 51% stake. The remaining 49% is publicly traded in Toronto via the Movie Distribution Income Fund.

In Canada, MPD trades as Alliance Atlantis Films and has exclusive output deals with New Line, the Weinstein Co., Focus, Miramax, IFC and Remstar. Momentum and Aurum are among the leading indies in their respective territories.