The Los Angeles Times from Los Angeles, California • Page 61

LOS ANGELES TIMES SUNDAY. SEPTEMBER 18, 1994 D3 CANADA: Toronto Company Succeeds in Persuading Network It's Ready for Prime Time f-i rpci I I i Hungarian-bom Robert Lantos, left, and associate Victor Loewy have succeeded in entering the U.S. film and TV markets from Canada. and is a co-production with Tri-Star. The company recently launched a new division to produce low-cost action movies mainly for the cable and video market and in January will go on the air with its own cable channel on Canadian television, Showcase.

i "It's very informal, very high energy, very demanding and very exciting," chief operating officer Gord Haines said of the company he joined two years ago. "It's like being in the middle of an explosion." About the only thing that hasn't exploded is the stock price, which has only recently begun to rise after months of staying close to the $13 a share sold at offering. Alliance stock closed down 12.5 Friday at $15,625 on the Toronto Stock Exchange. Revenue was up 45 for the year ended March 31, with after-tax profits of $5.36 million on revenue of $79.56 million. Roger Dent of the brokerage firm Wood Gundy one of the few analysts who focus on entertainment companies here, is very high on Alliance and attributes the slow rise in the stock price to cautious Canadian investors unfamiliar with the industry.

Alliance is very much the creation of the Hungarian-born Lantos, 45, described by "Due South" executive producer Paul Haggis as "a real character, a larger-than-life producer." Lantos, the company's largest shareholder with a 21 stake, began in the early 1970s as a distributor and independent ducer. Working in a Canadian environment dominated by the major American studios, Lantos has pros- Continued from Dl based on the mega-selling Harlequin romance novels published by Toronto-based Torstar which CBS will counter-program to Fox's Sunday NFL broadcasts thia fall Alliance has an exclusive arrangement with Torstar and pnvisinns a strinsr of Harleauin films, eventually repackaged as videos that can be sold next to the books at retailers across Nortn America. Alliance Releasing, headed by lonetime Lantos business associate Victor Loewy, is the leading Canadian-owned film distributor here. It recently cut a deal to distribute Miramax films in Canada, giving it Canadian rights to KODert Alt- man's upcoming "Pret-a-porter" and Quentin Tarantino's "Pulp Fiction," among many others. In February, the company and Miramax will release the Alliance produced "Exotica," written and directed by Atom Egoyan.

The film, typical of the low-budget, director-driven projects the company long has been associated with, made a splash at this year's Cannes Film Festival, winning the International Critics Prize. Another Alliance production, "Whale Music," opened the Toronto International Film Festival on Sept. 8. In partnership with American companies, Alliance is moving into bigger budget movies, as well. "Johnny Mnemonic," a futuristic adventure based on a novel by cyber-fiction author William Gib- son, is in post-production, and at $23.4 million is the most expensive Canadian movie ever made.

"Johnny stars Keanu Reeves In producing "Exotica" and similar "art films," Alliance keeps a firm grip on the budget, generally less than $3 million, and only steps into the creative process more or less when asked. "There's no point in backing someone with an eccentric vision and then trying to interfere with that vision," Lantos said in explaining his philosophy. "I don't believe we have ever lost money on one of those director-driven low-budget films. We only finance them in part and our in-: vestment is on a favorable basis, but we've never lost money." With "Johnny Mnemonic" and others, Alliance is stepping into a different arena, but Lantos argues the company's approach is similar. "None of these films is what you would call a mainstream Hollywood movie, including 'Johnny he said.

But "at that level financially, production makes no sense unless there is a significant guaranteed revenue coming out of the United States. So we work with the U.S. distributors as partners on the more ambitious films, but still we pick the projects that are out of the norm." Egoyan observed that "what's ultimately interesting about Alliance is that it's able to embrace contradictions. They're able to pursue a number of different types of projects and give equal attention. I've never felt I've been less important to the company than their television work, and yet I know television is the financial fuel for the company." If Alliance made its way into the film world by backing eccentric little visionary films, it took quite a different road to success in television.

The company entered American television with such late-night fodder as "Night Heat," a action -adventure series. (Toy; be fair, Alliance also has long produced critically acclaimed series for Canadian television.) And Lantos said the hands-off attitude he takes with the director -driven films is the "exact opposite" df his approach to television. Alliance built its credibility 'with the networks with successful movies -of -the -week and miniseries. Beverly Hills -based Weisbarth points to the ratings-successful "Family of Strangers," starrfng Patty Duke and Melissa Gilbert; as an example. The film, about 'an adopted woman searching for 'her birth mother, was based on a true story, but Alliance moved the 'action from Indiana to the Northwest and filmed in Vancouver.

Canadians wrote and directed and Canadian William Shatner co-starred with Americans Gilbert and Duke. With "Due South," Alliance has penetrated what Lantos referred to as the innermost concentric circle of the television the prime-time series. Whether the show sticks. (jan't be foretold. But both Lantos "and Weisbarth say even a quick cancellation would not be fatal Alliance's future with the networks.

There are already loo many other projects under way." "If it does get canceled, it would be a disappointment, but nqta setback. It's maybe two steps ior-ward and one-half step back," Weisbarth said. The process boils down to this: Your executor hires an attorney who files your will with the local probate court. The court sends notice to your creditors stating that you have died and that your estate is being settled. Through legal hearings, the court pays your debts and "proves" the validity of your will.

The benefit of probate is that once it's through, creditors can't go after your heirs for payment of a bill. It also settles disputes between heirs. The disadvantages of probate ate also clear. It is time-consuming and expensive. The best case a simple, uncontested will takes about nine months to a year to clear In cases where there are disputed creditor's claims or infighting Please see DEATH, D4 v- 1 and television meeting national content rules.

A movie featuring a Canadian writer and producer and a French director and star might qualify for subsidies and tax breaks in both countries, for example. This approach has been crucial to Alliance, and allows the company to take on a personal film like "Exotica," which Egoyan describes as a "perversely romantic" movie he made for less than $1.5 million. With its success at Cannes, the film is pre-sold to a variety of markets and is profitable before its release. "The relationship has been very important to me," said Egoyan, who has made two films with Alliance. "They've given me access to a higher budget than I was used to and a lot of freedom.

And they're very adept at selling the Loved Ones to disinherit Suzie if she becomes an artist, or only if she both marries John and becomes an artist? If your wishes aren't clear, all or part of your will can be invalidated. Not mentioning a child. You may want to disinherit the lazy, good-for-nothing freeloaders currently occupying the spare bedrooms. But if you simply leave them out of your will, a judge may be persuaded that you suffered a memory lapse and forgot to give the freeloaders a rightful share. If you want to disinherit someone, say so.

Or leave the person a dime. Bequeathing already spoken-for assets. Your will does not control the distribution of all your assets. The proceeds of your life insurance "My high-tech I DEATH: Leaving One's Affairs pered by pursuing projects eschewed by the studios, by perfecting the art of international financingmainly through pre-sales to foreign markets and by building a lattice work of mutually supportive divisions within Alliance. For example, Alliance's distribution rights to movies from Miramax and New Line Cinema and to popular European films give it the clout with exhibitors to assure screen time for its own productions.

Other Canadian film producers have a notoriously difficult time getting exhibitors to show their movies rather than American films. One company division, Alliance Equicap, specializes in arranging production financing to take advantage of subsidies and tax breaks offered by many countries for films in Order Helps dren from different marriages or complicated desires, you might be wise to hire an attorney. However, if your aims are simple and your assets are modest, advocates of do-it-yourself Wills say the mistakes are easy to avoid. These are the errors to watch for: People forget to have the will witnessed, or they have their heirs serve as witnesses. Witnesses are supposed to be able to prove that you were sane and uncoerced when you wrote your will.

If a witness is also an heir, his or her testimony can be questioned. Poor writing. Consider: "I leave all my assets to Suzie, unless she marries that jerk, John, and decides to become an artist instead of an accountant." Does the author mean Let's introduce a sweeping new Proposition 103 and level the entire playing field so no one has any wealth at all. Of course, there would be little incentive for anyone to achieve or to produce anything, and that might further erode our standard of living, but at least we would all be impoverished equally. That would be real democracy.

BILL MIRKEN -x Nipomo Fortune 500 a Dated Idea in Global Market I can understand your desire to convey the impression that all is well with Southern California's business climate despite the grave loss of the headquarters of the Lockheed Corp. Firms Spell Exiting Aging Giants," Sept. 5). It is thusly reassuring for the Los Angeles Times to state that California still has the largest number of Fortune 500 headquar tersof any state. Unfortunately, the Fortune 500 is itself becoming increasingly dat ed when measured in the global marketplace.

Seven of the top 10 largest firms in the world are now headquartered in Japan. Most of those firms dwarf anything the United States has to offer. You had considerable commentary about the combined size of Lockeed Martin. However, at $20 billion plus, the merged firms are a mere drop in the bucket of the global economy. Japan largest firm, ito- chu, has annual sales of $180 billion-plus.

I believe, therefore, that the Los Angeles Times does a disservice to the community when it downplays the loss of the headquarters of a firm like Lockheed which was central to the growth of Southern California over the last 50 years. Instead of trying to foster the lowest wage area in the world (through editorial endorsement of wide open immigration), the Los Angeles Times might instead study how Japan has become the world's most powerful (by far) economy. A. DANIEL ELIASON Santa Barbara startup succeeded with innovative You also can buy fill-in-the-blanks "statutory" wills at virtually any stationery store for $1 to $5. You complete the form, get a few witnesses to sign, and either stick it in your safe deposit box or give it to a trusted friend or relative for safekeeping.

Or you can buy a will kit. The kits either in book form or computer software cost $10 to $70. Their advantage over statutory wills? They come with instructions. Some attorneys criticize do-it-yourself wills, noting that an individual can make important errors and end up with a will that is not valid. Indeed, if you're elderly, wealthy or have a complicated family arrangement such as chil cal technologies and prowess.

A return to the mid-1950s' criminal and juvenile justice laws and protocols that gave Californians a civility and optimism by the people of every other state in America will be achieved only when our politicians, jurists and prince-makers are willing to subordinate the gambits and shtick of callow, profit-driven attorneys to the peer-reviewed literature, objective facts and responsible expert opinion of licensed clinicians, social workers and physicians. Until that day, we shall endure being a land unsafe for children at play, at school or just eating pizza at the beach, and for oldsters on their way to the market or pharmacy, and for market clerks doing their damnedest, and for stressed-out police officers. KENNETH S.BREMAN La Mesa Where Prop. 103 Mentality Could Lead The Times reported that 20th Century's stock plummeted on the news that its constitutional challenge to Proposition 103 was rejected Century Industries Shares Fall Nearly 25," Aug. 20).

Ralph Nader lauded the ruling as proving the constitutionality of Proposition 103. Actually, what happened is that the court legalized theft I Any money that a business earns through free voluntary exchanges with individuals mayi now be taken by force through a vote of the people. The logical consequence of this decision is that anyone's money may be seized if that be the whim of the people. In essence, nobody's claim to property is valid. Jews in pre-World War II Germany would understand this situation well.

"Life, liberty and the pursuit of happiness" is no longer the presumption in the United States. Aside from overpaid insurance companies, what about overpaid baseball players? Or overpaid actors or physicians? Why should they have more than we? policy go to the named beneficiary, regardless of what it says in your will. Assets held in joint ownershiphouses, cars and bank accounts held by husband and wife, for example revert to the joint owner on your death. You' cannot change the beneficiary of these assets in your will. Don't try.

Bequeathing for both of you. "We leave all our worldly assets to our children. You can't create a joint will. "You die alone," says Stephen Elias, co-author of WillMaker, a popular piece of will-writing software. Step2: Understand Probate When you die, your assets generally go into a legal limbo called probate.

i mil X. Continued from Dl issues can be handled easily and inexpensively if you plan in ad-" vance. Here's a six-step guide. 'Step 1: Writing a Will Preparing a will is the first step in creating a viable plan that will allow your heirs to survive comfortably in your absence. In California, a plethora of do-it-yourself wills are completely acceptable.

The simplest is a handwritten statement that spells out who you are, what you've got and who should get it. These so-called wills are simply signed and dated. No witnesses are necessary. LETTERS Continued from D2 sent to live with relatives in this because their grades are not high enough to enter their own schools. Then to have countries such as Japan moving slowly in ing American students into their academic programs makes one who is taking whom for granted and who is deriving what benefit? Additionally, half a million more American students in our educational system would also increase the number of likely candidates i -pursuing a business or technical education, both here and abroad.

Two years ago there was a proposal by a congressional candidate to review all our antiquated educational suppositions, of which the number of foreign students taking spaces in American colleges was one. It's too bad no one was listening. BOB BAKER Anaheim Crime Isn't the Way Flanigan Describes It Of James Flanigan's overview on present-day and future crime Change Cheaper Than $30-Billion Crime Bill," Aug. 28): Mr. Flanigan's data and thinking are seriously off the mark on several points.

First, the decline in crimes against property apparent from FBI statistics is fallacious; plea bargaining and overextended police work caused by serious financial shortfalls among America's states, counties and municipalitiesnot a decline in crime are wnai in laci exist. Second, an aging society (such as ours) will not necessarily enjoy safer streets and schools, for with aging comes the calcification of the imagination, intellect, vision and courage to attempt new approaches. Third, of drive-bys and areas normally quite light in homicides, more and more of the killers are younger and younger; a majority of experts and anointed prognostica-tors appear to be saying that we ain't seen nothing yet Fourth, it is woeful and ironic that we have transmogrified into a society largely ruled by an ethos distrustful of and hostile toward empirical evidence, the scientific method and the medical model we who pride ourselves and take products. And 'd if a Pepperdine MBA." Find out how a mid-career MBA or bachelor's degree. can be the key to your success.

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