French collecting society SCPP has launched an estimated €200,000 ($250,000) fund to help its record company members overcome the bankruptcy of Night and Day, the independent distributor that we

French collecting society SCPP has launched an estimated €200,000 ($250,000) fund to help its record company members overcome the bankruptcy of Night and Day, the independent distributor that went down in July.

Through this fund, those labels that were working with Night and Day will receive partial compensation for their losses from the distributor's irrecoverable debts.

SCPP undertook a similar initiative in 2005, following the bankruptcy of two other key indie distributors M10 Distribution and Mélodie.

In a statement, SCPP claimed it had a "will to improve the financial security of phonographic production and to favor music creation."

The collecting society is now calling the French ministry of culture to support similar measures by setting-up a permanent fund to the phonographic industry. The French government has already adopted this summer a tax credit scheme to support producers' investments on "new talents."