The Hollywood Reporter.com: Search Results (original) (raw)

By Blake Murdoch and Charles Masters

CANNES -- A potential battle is brewing between recently established Hong Kong production/distribution company Han Entertainment and French distributor SND about French rights to Michelle Yeoh's latest film, "The Touch," with Han claiming that SND is in breach of contract.

A year ago, SND was the first international investor to pony up a minimum guarantee for the $20 million martial arts film, alongside Taiwanese group Pandasia. Miramax was the next major player to come aboard the feature, to be released July 25 throughout Asia.

Han managing director Thomas Chung said SND has been trying to reduce the minimum guarantee -- which he said represents a "not insignificant" portion of the film's budget -- because of dissatisfaction with the casting of the film's male lead, Ben Chaplin.

Chung said following months of discussion, the companies agreed to reduce the minimum guarantee by 12.5%, but following talks at February's American Film Market, there has been no further communication from SND. In the absence of a payment being made, Han has been advised by its lawyers to proceed with selling "Touch" to France.

"As far as I'm concerned, France is available," Chung said.

Chung said as a result of SND's withdrawal, Han was forced make up the shortfall with its own resources.

"If we suffer any loss due to this mistreatment, we'll put the matter through our lawyers," he said. "I'll be damned if I'm going to bend and sway if that's the way they choose to deal with me."

SND managing director Thierry Desmichelle said his company simply sought to reduce its minimum guarantee in line with a change in "Touch's" budget, but that as far as SND is concerned, it still has a contract -- and Han should not be selling the film for France. "but I don't want to inflame the situation," he said.

SND is a subsidiary of French commercial television net M6.

Chung said he is meeting with Miramax co-chairman Harvey Weinstein this week in Cannes to discuss "Touch's" U.S. release.