According to an attorney for Canadian actor/producer Dave Thomas, negotiations are ongoing to avoid a lawsuit between the sctv alumnus and Toronto-based MEG Media Group, the production partner on the new MacKenzie Brothers film Home Brew, after financing fell apart late last month.

Thomas says production on Home Brew, slated to begin principal photography July 19 in Toronto, has been halted indefinitely. Thomas broke the news to the crew July 23. The sets have been struck, cars reclaimed by the rental companies and computers disassembled, he says.

Thomas alleges that under the terms of the Home Brew deal, meg was responsible for securing the financing and ensuring all insurance guarantees were in place. He says that while working on script rewrites with fellow MacKenzie brother Rick Moranis, he learned that the insurance policy guaranteeing sales and distribution might not be in place. Thomas says he spoke with the company that was supposedly the insurer of the film, u.k.-based broker Sterling Cook, and was told the company had already stated to meg that it would not insure the $15-million film without domestic distribution attached.

‘The bottom of my world fell out at that point because I had been financing preproduction,’ says Thomas. ‘I had put us$750,000 of my own money into this. I totally funded preproduction, borrowed money, and now that’s all gone. I am really disappointed.’

If a settlement cannot be reached, Thomas says a lawsuit against meg will be launched. meg had signed a deal with Thomas’ Maple Palms Productions to coproduce up to eight films with budgets between us$4 million and us$15 million.

meg declined comment until negotiations are finalized.