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Collection problems cash flow difficulties.

Collection Problems Cash Flow Difficulties

The industry is experiencing a major collection problem which, in the case of some of the smaller distributors and sales agents, is creating a severe cash flow hangup.

"It's becoming one of those |the check's in the mail'" situations and if it continues, "everyone's going to pay on the next picture" said one distributor.

Another, from the UK, said he was owed money by a major American firm. When the non-payment issue reached "the nasty stage," the American company simply sent a "sue me" fax.

The situation isn't uniform - there are those who say that they're getting payments without problems - but the complaints are widespread to support their validity.

"The Americans have simply stopped paying," complained one European, adding that it probably had to do with the Gulf War and the general recession.

The collection problem started with the Americans, but has now spread to other parts of the world. "It's tough to get anyone to write a check these days," said one agent. "It has a kind of domino effect."
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Title Annotation:AFM Roundup
Publication:Video Age International
Date:Mar 1, 1991
Previous Article:European banks back films, but $ scarce due to real estate.
Next Article:AFM-MPAA "head to head." (American Film Market; Motion Picture Association of America) (AFM Roundup)

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