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Bornedal was born in Nørresundby, Denmark. He wrote and directed Nattevagten (Nightwatch, 1994), a thriller about a law student who works in a morgue as a night-watchman, and becomes implicated in a series of murders of prostitutes. He also directed an English language remake (Nightwatch) in 1997, starring Ewan McGregor, Nick Nolte and Patricia Arquette. In 2002, he directed I Am Dina. Other Danish films include The Substitute (2007), Just Another Love Story (2007), and Deliver Us from Evil. In 2012, he directed the English-language film The Possession. He was one of the producers of Mimic.
He is married to the Danish actress, Helle Fagralid, and has three children.
