Village Roadshow Files for Chapter 11 Bankruptcy Following Warner Bros. Dispute

The entertainment company cites financial strain from legal battles, unpaid debts, and severed ties with Warner Bros. as key factors in its filing.

Village Roadshow Entertainment Group filed for Chapter 11 bankruptcy in Delaware, listing assets of $100-$500 million and liabilities of $500 million-$1 billion.
The filing highlights a costly $18 million legal dispute with Warner Bros. over the simultaneous release of 'The Matrix Resurrections' on streaming and in theaters.
The company claims the fallout from the arbitration irreparably damaged its lucrative partnership with Warner Bros., which accounted for the majority of its business success.
Village Roadshow's financial troubles were compounded by industry-wide challenges, including pandemic-related production delays and the Hollywood writers' strike.
The company has attracted a stalking horse bidder for its library assets at $365 million, with at least one other party expressing interest.