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The $15 million MacKenzie Brothers sequel to 1982's Strange Brew was to begin Toronto production this week with Thomas and Rick Moranis as Bob and Doug MacKenzie.
But Thomas said he had to tell the mostly Canadian cast and crew last Friday that the production was shutting down.
"I'm really soured," said Thomas by telephone from his L.A. office of Maple Palm Productions. He is also out US$750,000 he put up for pre-production, "just so we could get things moving, or we would lose the actors."
Thomas said he discovered last week that certain Home Brew money arrangements weren't in place, including an insurance policy that guarantees sales and distribution of Home Brew.
Moranis and Thomas created the beer-swilling, toque-wearing Canuck characters for SCTV skits, and subsequently released the movie Strange Brew.
Thomas said '99 video sales of Strange Brew encouraged the writing-performing team to do another MacKenzie Brothers film. "We jumped at the chance of getting it financed," said Thomas.
He said he might seek compensation for damages and losses, and to cover a $500,000 pay or play clause in the contracts of Moranis and Dan Aykroyd, who was also starring in the feature.
A MEG Media Group official said yesterday that Home Brew had not been shut down and MEG was still negotiating with Thomas' Maple Palm about re-scheduling.