Louis Koo's Studio Sued Over $1.49 Billion in Debt as Big-Budget Bets on 'A Step Into the Past' and 'Warriors of Future' Backfire
Louis Koo's One Cool Film Production has been taken to Hong Kong's High Court by an offshore company seeking more than HK$149 million, spotlighting the heavy losses on costly sci-fi productions the star has championed to keep Hong Kong cinema alive.
Photo: Mirror Media
Louis Koo, who over 32 years in the industry has become known in Hong Kong film circles as "Boss Koo," and his One Cool Film Production, were suddenly reported on the 3rd to have been taken to Hong Kong's High Court by an offshore company. The suit seeks principal and interest totaling more than HK$149 million (about NT$610 million), and news of it sent shockwaves through the entertainment industry. This unexpected cross-border debt storm has once again turned outside attention toward the sprawling film and television empire he and One Cool Film have built in recent years—bold, expansive and hard-fought. Only he has dared to invest heavily in sci-fi blockbusters such as "A Step Into the Past" and "Warriors of Future," yet their box-office returns have laid bare a harsh reality.
In fact, looking back at Koo's dealmaking in the film industry in recent years, the heavyweight productions he has backed—routinely costing more than HK$100 million—have indeed faced one severe market test after another. To open up new ground for Hong Kong's film industry, he spent years of effort and as much as HK$450 million to create the sci-fi mecha epic "Warriors of Future." Even though it set a box-office record in Hong Kong, combined with the mainland market it still struggled to clear the steep HK$1.35 billion break-even threshold, and reports say its ledger showed a deficit of as much as HK$200 million.
Another film, the movie version of "A Step Into the Past," which carries the nostalgia of countless fans, had production costs cited in two figures—HK$220 million and HK$350 million. It not only went through years of delays and accumulating interest, but also poured a huge budget into securing the licensing rights to classic film and TV material. Koo himself hit the promotional trail alongside Jessica Hsuan and Raymond Lam, and even re-edited an extended version for a second theatrical run. Hong Kong media noted the film likewise faced losses of at least HK$100 million.
Still, big productions have not come away entirely empty-handed. This year's action blockbuster "Twilight of the Warriors: Walled In," which grossed more than US$110 million worldwide and stirred up a whirlwind everywhere, proved that top-tier, heavy-industry Hong Kong aesthetics still have striking and tangible earning power. But Koo was not the film's only financier, so even a profit could hardly fill the holes left by "A Step Into the Past" and "Warriors of Future."
It is well known in the industry that Hong Kong cinema has faced a tough environment in recent years. Many high-quality small- and mid-budget arthouse films focused on society's margins and serious realism, unable to secure financing anywhere, often end up turning to Koo for "life-saving money." Fortunately there have also been works like "The Sunny Side of the Street" and "Men on the Dragon" that defied the trend to score good box office, but for the overall market they remain a drop in the bucket.
On one side are high-budget commercial blockbusters with mixed fortunes in the marketplace; on the other is the loyal support that props up local new directors and underdog subject matter without any expectation of return. Koo's solitary, courageous march through the world of cinema is there for all to see. Although the legal maneuvering in this court case and the details of the money flows behind it still need to be clarified, the real market storms this industry tycoon faces in his effort to hold up Hong Kong cinema have already become the most closely watched focus of the moment.