$69-Million Deal Involves Overseas Rights : DEG Agrees to Sell Part of Film Library

De Laurentiis Entertainment Group, the beleaguered Beverly Hills film producer, said Tuesday that it has agreed to sell the foreign television, video and cable rights to its film library for about $69 million. The buyer was identified as a company controlled by British financier Michael W. Stevens.

DEG, which has been forced to restructure its finances and management in the wake of a string of box-office bombs, said the money from the sale will pay off its $57 million in revolving bank loans, with the rest to be used for working capital.

The library, which includes more than 320 titles, is one of the company’s major assets. The sale of all or part of it has been considered key to the company’s chances for a financial turnaround. The library includes such films as “Carnal Knowledge,” “Serpico,” “Blue Velvet” and “The Producers.”

In the third quarter ended Nov. 30, De Laurentiis lost $15.7 million on revenue of $20.5 million. The quarterly loss raised the company’s total loss to $36 million for the first nine months of its fiscal year.

Stevens is buying the rights through Alnery No. 665 Ltd., a British company that was formed for that purpose. Stevens also controls Parafrance Communications, a French entertainment firm that operates Tele-Cip of Paris, which claims to be the largest private television production company in Europe.

Retains Domestic Rights

French film sources said Parafrance, formerly controlled by the Siritzky family, was once one of France’s major studios before it fell on hard times in the early 1980s, and Stevens bought control. Parafrance, which is now primarily a distributor, owns some theaters and has cut back on its productions, according to those sources. Stevens is said to be in his 30s and frequently works with one of his brothers.

In addition to the foreign television and video rights, Stevens will receive as part of the deal an undisclosed amount of accounts receivable, or unpaid bills, owed to De Laurentiis for foreign licensing fees and other obligations. The sale is expected to be completed within two months.

A DEG spokesman said the company retains domestic rights to the film library. It also retains the international theatrical exhibition rights to the films, although they are generally considered to be more valuable as television and video programs because of their age. DEG also retains its 32-acre studio in Wilmington, N.C., which it still may sell.

Last month, the company’s founder and chairman, producer Dino De Laurentiis, resigned. His replacement, Stephen R. Greenwald, could not be reached for comment on Tuesday. In a statement, Greenwald called the sale of the film rights “an important first step” in the company’s restructuring.

DEG, which went public at $12 a share in mid-1986, closed at $1.125 a share in trading on the American Stock Exchange, up 18.75 cents.