Thing is, if MangaUK went up to the license holders in Japan and said "Can we release this in the United Kingdom in NTSC format instead of PAL?", the Japanese said no, but Manga went and did it anyway, that would put them in breach of contract which would be very bad news. It's a shitter that if our guesses are right, that the Japanese won't let them go ahead with it.
If Madman Entertainment and other Australian companies move entirely to NTSC (I've heard they're doing some NTSC releases, but what is the likelihood of a complete change?) then yeah, it will be very bad news for MangaUK and MVM. Sure, Kazé may do their own disc authoring, but don't they use MangaUK for distribution? So if we lose Manga, Kazé will have to find another UK distribution partner. I doubt we will lose Manga UK over it, but it will probably mean their releases will become more expensive and there will be fewer releases and higher sales needed...could see how that could finish them off though.