Indian billionaire Anil Ambani-led ADAG Group and Hollywood director Steven Spielberg's DreamWorks Studios, have completed the first phase of funding for their new motion picture company.

ADAG, the parent firm of Reliance Big Entertainment, and DreamWorks' principal partners — Spielberg and Stacey Snider — have completed the first phase of funding for the new Los Angeles-based company, the firms said in a statement on Monday.

Further, both entities said JP Morgan Securities arranged the syndication of about $325 million of senior debt — which has priority in repayment over other kinds of debt — which Reliance Big Entertainment is matching with its equity commitment.

"The Walt Disney Studios, who will handle marketing and distribution for the studio, will also extend a loan to DreamWorks as part of the distribution deal," the statement noted.

Last month, ADAG and DreamWorks announced movie deal, with an initial funding of $825 million from the Anil Ambani group.

"Our partnership with Stacey and Steven is the cornerstone of our Hollywood strategy as we grow our film interests across the globe. Now Stacey and Steven can focus on producing more of the great films for which they are renowned," Ambani said.

Noting that the latest funding would help the company to move ahead into production of the first group of films, Snider and Spielberg said, "We wish to thank Anil personally for his foresight and fortitude over the past months.

"We congratulate JP Morgan for their leadership in attracting this funding during today's most challenging financial environment".

According to the statement,  Reliance Capital's Vice- Chairman Amitabh Jhunjhunwala and JP Morgan's Alan J Levine, would be joining Dreamworks' Board of Directors.

"DreamWorks has a long-term distribution deal with The Walt Disney Studios which will market and distribute approximately six live-action films a year for the company, except for India where Reliance Big Entertainment will retain distribution rights," the statement added.

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