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2mo ago

Village Roadshow Files for Bankruptcy as Warner Bros. Dispute Drains Finances

The entertainment company cites $18 million in legal fees, unprofitable ventures, and industry disruptions as it enters Chapter 11 proceedings in Delaware.

People wait for the guests to arrive at the red carpet for the premiere of The Matrix Resurrections in San Francisco, California, U.S., December 18, 2021. REUTERS/Fred Greaves/File Photo
The Matrix was one of the biggest hits from Village Roadshow Pictures.
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Overview

  • Village Roadshow Entertainment Group has filed for Chapter 11 bankruptcy, listing assets of $100-$500 million and liabilities of $500 million-$1 billion.
  • A legal dispute with Warner Bros. over the hybrid release of 'The Matrix Resurrections' has cost the company $18 million in legal fees and severely damaged their once-lucrative partnership.
  • The company's financial troubles were worsened by a failed $47.5 million expansion into independent film and television production, which yielded no sustainable profits.
  • External pressures, including the COVID-19 pandemic and the 2023 Hollywood writers' strike, disrupted revenue streams and delayed productions.
  • Village Roadshow's library assets, generating $50 million annually, are set to be sold with an initial stalking horse bid of $365 million to address its mounting debts.