06/02/2025
Bonfire Entertainment enters joint contract with FRI for three years
The shareholders and debt holders of Film Regions International, Inc. (FRI) were recently briefed after the company’s quarterly board of directors meeting on May 21st that Bonfire Entertainment, will be entering into a contractual joint management relationship with FRI for at least the next three years. Like FRI, Bonfire Entertainment is also independent film company, but has proposed potentially greater resources that can help FRI stay afloat.
Facing severe financial setbacks, compounded immensely by defaults on film investment debts and cash flow shortages last year, FRI signed approved a contract with Bonfire last Wednesday evening. Moving forward, Bonfire will be involved with overall management including business, film financial development and production operations. Bonfire is headed by Steven Taylor and it is hoped that the new arrangement will eventually enable FRI to support itself by overseeing quality film production, which will also improve its finances.
“Unlike the previous advisors the Board has had, under this contract, it gives them (Bonfire) more directive and power” said FRI board member Ronald Puleio. “It was a tough decision, but we can’t keep spending money and going nowhere.”
Since 2024, FRI has been forced to scale back operations, canceling contracts and cutting film productions. “There may be fewer films this year, but we need to just get through all that and focus on turning the company around as a priority, all of the consultants have reiterated this” said Puleio. And such a turnaround now depends on the entire team with Bonfire being in place. Unlike some smaller independent film companies, FRI does have existing film library assets to monetize off of, it’s been a problem of the best distribution deals that are in place, which will be another item that Bonfire will further address.
The board and John Blythe, head of the company, will be backing off and leaving the initial operating plan to Bonfire. The diminished role of administration was reflected in CEO Blythe’s brief address “I want to thank the board for approving this contract… From my viewpoint, we really need the help, and it looks like a potential solution to a lot of problems.”
Some of FRI’s debt holders, though not present at the board meeting, were keenly interested in FRI’s arrangement with Bonfire and hopes it will generate funds sufficient to meet the production company’s debt obligations. “The debt on FRI’s balance sheet is concerning, but it’s a situation of tackling working capital and improving revenue” said board member Stephen Wu, who joined the FRI board last August. The 30-day transition with the company was triggered by debt holders “lack of results overtime” said Puleio.
Bonfire Entertainment however, was not recommended by FRI’s debt holders. Under severe financial constraints, FRI board members evaluated several options from asking shareholders for working capital stock. When that plan failed, the scenario of bankruptcy was even considered, until partnering with another company was discussed at length and reached out to Bonfire in February of this year for a proposal.
The company is expected to evaluate FRI’s situation over the next 30 days and present an action plan which will be further discussed and approved later in June.