Village Roadshow Entertainment Group has filed for Chapter 11 bankruptcy protection, TheWrap has learned.
The production company behind “The Matrix,” “Joker,” “Wonka” and “Ocean’s 8” previously sued Warner Bros. for breach of contract after their co-producer dropped “The Matrix Resurrections” on Max the same day as its theatrical release, a detail they reiterated in their paperwork.
“The company historically enjoyed a prolific co-production, co-financing and co-ownership relationship with WB, which included the production, ownership and derivative rights flowing from 89 titles – including the ‘Matrix’ franchise – and comprised the vast majority of the Debtors’ business,” the documents filed in the U.S. Bankruptcy Court for the District of Delaware and obtained by TheWrap on Monday read.
They continued, “The WB arbitration has caused the company to incur more than $18,000,000 in legal fees, nearly all of which remain unpaid, and presents the threat of a potential arbitration award that could flatten the company’s balance sheet, but that is not the full extent of its impact.”
“Even if the WB arbitration is resolved, the company believes that it has irreparably decimated the working relationship between WB and the company, which has been the most lucrative nexus for the company’s historic success in the entertainment industry,” the filing added. “While the WB arbitration does not impact the debtors’ entitlements (including rights to receive payments in connection with) or ownership stake in its most valuable assets, the library assets, it has eradicated the company’s potential income stream.”
Village Roadshow listed its assets to be valued at $100 million-$500 million, with CP Ventura LLC noted as a “stalking horse” bidder for said assets at $365 million in addition to another interested party. Meanwhile, the company’s liabilities are listed as $500 million-$1 billion.
Other notable movies in the above 89 titles include “Ready Player One,” “Passengers,” “The Magnificent Seven,” 2016’s “Ghostbusters,” “Mad Max: Fury Road,” “Jupiter Ascending” and “American Sniper,” to name a few. Village Roadshow Pictures’ upcoming slate also includes sequels for “San Andreas,” “Sherlock Holmes,” “I Am Legend” and “Ready Player Two.”
The news also comes two months after former CEO Steve Mosko stepped down following a pay scandal with the Writers’ Guild and subsequent layoffs.
