Quebecor bails out Cinma Imprial, buying out nearly $5M in debt

The Cinma Imprial, a century-old theatreon Bleury Street, is getting a cash infusion from media giant Quebecorthat will facilitate its preservation.

Montreal's perennially financially insecure World Film Festivalis based at the Imprialand a spin-off organization is the theatre's owner.

• Montreal film festival employees resign en masse
• Is the Montreal World Film Festival doomed?

On Tuesday,Quebecorannounced it bought out nearly $5 million in mortgage debt looming over the ownership group.

QuebecorCEOPierre KarlPladeautold reporters that his company's partnership will "ensurethe sustainability" of the landmark theatre and "develop its full potential."

TheImprial, which originally opened in 1913 as a vaudeville theatre and hasprovincial heritage status,wasdonated to the FFM in 1995.

A separate non-profit called CentreCinmaImperial was created to manage the building, but both are controlled by festival founderSergeLosique'sfamily.

Financial concerns remain

Losique'sleadership of the festival has been repeatedly questioned over the years as its financial woes mounted. Several funding agencies cut ties with the festival in 2014 following funding disputes.

That year,Losiquetook out a $2 millionmortgageon theImprial. He took out another $150,000 loan in 2015 in order to be able to pay the festival's employees.

Lastyear, festival employeesquit en masse over concerns aboutleadership and money issues.Quebec's Culture Ministry thenrefusedto bail outthe festival, citingLosique'sunwillingness to present a plan to regain financial stability.

• Cineplex dumps Montreal's World Film Festival ahead of opening

More recently,reports surfaced thatHydro-Qubeccut power to the Imprialover outstanding bills.

At Tuesday'snews conference,Losiquesaidhe was delightedQuebecorhad stepped in to help.

"We want to reassure the public that this monument will remainalive and wellforever," he said.

He explained that a new administrative board for the theatre would be comprised ofLosique, his son, two independents and twoseniorQuebecorexecutives.

• Employees at Montreal's Festival des films du monde say they haven't been paid

But the support fromQuebecordoesn't mean an immediate end toLosique'sfinancial concerns.

He is due in court on Friday. The creditor who extended the 2015 loan No Limit Loan Inc. is seeking the right to take payment.

This year's edition of the Festival des Films duMondewill run from Aug. 24 to Sept. 4. Despite beginning on Thursday, no programming information has been made available.