Positive enough feedback from a production company...but...they've something slightly similar in development. Will other production companies who don't still be interested or do they tend to know what the other ones are working on? And is this the "best" reason you can get for rejection (rather than "it was sh1te" etc)?
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"Many thanks for the script. It was an enjoyable read and highly imaginative but I'm afraid, for me, it's not something we could pursue. We currently have a show in development featuring ... and we are not looking for anything else in this area. "