Village Roadshow Files for Chapter 11 Bankruptcy

bitbydeath

Gold Member
Village Roadshow Entertainment Group, the renowned film producer and financier that has backed “The Matrix,” “Ocean’s Eleven,” “Joker” and “The Lego Movie” franchises, has filed for bankruptcy protection in the U.S.

The company filed for Chapter 11 in Delaware on Monday, with $223.8 million in asset-backed secured notes and $163.1 million of senior secured debt, according to court documents. The news comes amid a long-drawn out and expensive legal battle with its long-standing partner Warner Bros. over “The Matrix Resurrections,” a 2021 sequel to the sci-fi series.
“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.”

The filing added: “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 company has been exploring a sale since early 2024, after the leadership came to the conclusion that its liquidity crisis was becoming insurmountable, according to the court filing. At the time, the company employed 45 people. It has since trimmed its staff to 11, as it narrowed its focus to completing the sale process.

The bankruptcy filings state that a stalking horse bidder — identified as CP Ventura LLC — has agreed to pay $365 million for the company’s library. The purchase agreement identifies the buyer’s representatives as Steven Kram and Steven Blume, the co-founders of Content Partners LLC, an investment firm that acquires film and TV libraries.
 

Mr Reasonable

Completely Unreasonable
it was released i think same day on the hbo max streaming service and i think the producers thought it hurt their box office numbers and cost them big time

I had to look it up, it was the last WB film to be simultaneously released on HBO Max. At the time the Omicron variant of COVID was the big thing, here in the UK they were considering another lockdown and facemasks were compulsory in public spaces (including cinemas).

You can imagine that people at Village Roadshow might have been resentful, because had the film been delayed again or even just kept off streaming, it likely would have made more - from Wikipedia:

"According to Samba TV, the film was streamed in 2.8 million households over its first five days of release.[107] Over the same period, it received the most unauthorized downloads of any feature, making up 32.6% of torrents"

Part of the problem was that the film didn't get an international streaming release - HBO Max is only available in a limited number of countries (tbh, I'm not sure that it wasn't USA only at the time). Again, from a UK perspective, the film got a theatrical release, but if you wanted to see the film but didn't want to go to the cinema and risk either COVID or just didn't want to wear a mask, then the only way to watch it was to download it illegally.

So, I think Village Roadshow has reasons to believe that WB's decision release the film with HBO would have hit their bottom line.

It was probably even more damaging for this film because by the time the world could pay to stream it, everybody knew that the film wasn't going to be one that would be bothering many top ten lists.
 

Solarstrike

Member
not like this GIF
 
Top Bottom