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Flowcharts of Collateral Geneva Media Principal Protected Structure.

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Presentation on theme: "Flowcharts of Collateral Geneva Media Principal Protected Structure."— Presentation transcript:

1 Flowcharts of Collateral Geneva Media Principal Protected Structure

2 Breakdown of Collateral Sources: Service Credits = $ 32,000,000 Picture Subsidy = $ 32,000,000 Labor Credit = $ 32,000,000 Canada Credit = $ 22,000,000 Pre-Sales = $ 21,000,000 Cash Values = $ 75,000,000 Commission = $ 15,000,000 Total Collateral = $ 230,000,000 $ 100,000,000 Production Funds Insurance Costs $ 75 MM CASH VALUES $ 100,000,000 Production Cost and no P&A cost Fund spends: $ 100,000,000 Production Costs plus all P&A cost Studio spends: $200MM Media Slate 25% Profits 75% Profits 100% break-even for any bank or equity investor Benefits: Families retain $ 750,000,000 (FAMILIES STAY PROTECTED W/ $750MM IN BENEFITS) Breakeven: Fund retains $ 118,000,000 (FUND CAN RETAIN $118MM IN MEDIA TAX CREDITS) (Estimated L&H Commissions on CAIC = $15 MM to $18 MM ) $200 MM LOAN/EQUITY FACILITY w/ $ 230 MM Collateral CAIC $ 750 MM FACE AMOUNTS $ 200 MM Geneva Media Structure Geneva Media Principal Protected Structure

3 Hedge Fund Bank Producers TV Network Investors PayeePlayers Participants Cast / Crew CV (Cash Values) CAIC (UL Policy) IRS 83(b) ERISA Media Mitigation LP pays premiums and has REBA on all policies on file General Partnership (2%) Bank (1%) Media/Film Co (1%) LP s capital contribution (98%) Cast / Crew swap bonus for equity Cast / Crew’s Families Media/Film Co. Funds Bonus Salary UL Ownership always remains with Cast/Crew Media/Film Co. pays 162 Salary Bonus to Media Mitigation, LP Media/Film Co. …NO MOVING PARTS, FULLY LEGAL, BANK AS FIDUCIARY… Geneva Media Principal Protected Structure

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5 “Insurance-Backed” Media Slates (similar to Destination Films and AIG P&C contracts) “Cash-Backed” Media Slates (similar to tax credit or pre-sale discount contracts) Property & Casualty Companies like AXA or AIG unfortunately collected too few premium dollars to suffciantly cover all $200mm of risk Media Slate has $200,000,000 at risk Property & Casualty Policy (wrapper) Policy Provisions & Limitations (coverage) Bank or Hedge Fund $ Disclaim Obligation & Recind (lawsuit) Life & Health Policy (cash) Policy Values & Benefits (guarantee) Disclaim Obligation & Recind (unlawful) Life & Health Companies like Met, State Farm and Pan American offer cash value accounts to suffciantly cover all $200mm of risk Media Slate has no risk Bank or Hedge Fund $ Indie or Studio Films $ Indie or Studio Films $ P&C Premium: $5,000,000 L&H Premium: $100,000,000

6 Risk Mitigation Features Geneva Media Principal Protected Structure

7 CAIC -- Cash Accumulation Insurance Contracts -- Provides a massive amount of liquid cash value which is set aside and reserved to protect fund assets. The proprietary use of CAIC adds life/health benefits for cast and crew members and also provides 100% cost recapture protection for all projects by effectively doubling or tripling Canadian and US tax credits REBA -- Restrictive Employee Bonus Agreement -- Allows investors and banks to collateralize liquid cash surrender values inside CAIC. Aaa rated insurance carriers with a perfect track records in interest crediting and claims paying performance are also protected by State Guaranty Funds Geneva Media Principal Protected Structure

8 Pre-Sales -- Discountable Contract Protection -- Foreign and domestic distributors promise to pay a fixed price for the right to exhibit media or sell software. Investors are thus protected by pre-payment agreements Tax Credits -- Theatrical Incentives -- U.S. States and Canadian provinces provide between 32% and 62% reimbursement or credits for theatrical productions shot within their borders. Tax credits are considered collateral Pick-Up Deal -- Studio Purchase Agreement -- A studio, TV network, or media company promises to purchase a project when it is finished, for a fixed price, which fully covers all of the fund’s production costs and invested expenditures Geneva Media Principal Protected Structure

9 Contact: This confidential investor preview document is intended solely for general informational purposes in order to foster the discussion of new business ideas with prospective partners and other persons relevant to such business. It is not intended as, and does not constitute, an offer to sell, or a solicitation to buy, any security. Any such offer or solicitation, if ever made, shall be made by a prospectus, offering circular, offering memorandum, or similar document which will contain updated and additional information as well as a discussion of risks and other important matters. Such information, and any other information provided to the recipient about the business ideas contained herein, may be based on estimates and assumptions (which may be subjective), and information provided by third parties. All of the foregoing, as well as the information in this document and any other information provided to the recipient, are subject to change. Any reproduction or distribution of this confidential document in whole or in part, or the divulgence of any of its contents without the prior written consent of Geneva Media Holdings, LLC and is prohibited. Any distribution of this confidential document to any person other than the person to whom it was originally delivered by Geneva Media Holdings, LLC, or its authorized agent, is prohibited. By accepting this confidential document, the recipient agrees to abide by all of the foregoing conditions. Beverly Hills, California Telephone 424.666.8769 Geneva Media Principal Protected Structure


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