MUMBAI: Pyramid Saimira Theatre Ltd has entered into an MoU (Memorandum of Understanding) with Infinity Film Completion Services, which is a division of Infinity India Advisors Pvt Ltd, Mumbai.
Under the terms of the MoU, Infinity will issue the completion guarantee for Tamil, Telugu, Kannada and Malayalam films to be procured by the company. This guarantees the risk of completion of the film to the financier including the over budget funding.
This MOU covers a minimum of 25 such film projects in the first 12 months from today (12 January, 2007).
These guarantees are fully re-insured by GIC of India. Since the guarantee covers the full completion of film, Infinity willl also arrange institutional bank finance to the said films.
The completion guarantee along with full insurance for performance by GIC, adds weight to the transparency brought in by the theatre chain companies, which offers a paradigm shift for Indian film industry in terms of availability of risk mitigation, structured finance and transparency in film making and financing.
This agreement is a major step towards creation of film content supply chain for Pyramid Saimira Theatre Ltd and in effect indirectly funds close to Rs 3 billion (Rs 300 crores) of working capital as off balance sheet funding.