Village Roadshow files for bankruptcy in the US

Village Roadshow Entertainment Group, known for films like The Matrix and Ocean's, has filed for bankruptcy protection in the US. The company blamed its financial issues on a legal dispute with Warner Bros and unsuccessful attempts to produce independent films. According to court documents filed in Delaware, Village Roadshow is facing debts estimated between $500 million and $1 billion. It plans to sell its film library for $365 million to help address its financial problems. The conflict with Warner Bros began in early 2022 after the release of The Matrix Resurrections. Village Roadshow accused Warner Bros of excluding it from rights to future sequels and prequels. The legal battle has cost the company over $18 million in legal fees, most of which remain unpaid. The company's chief restructuring officer, Keith Maib, stated that the dispute has severely damaged the business relationship with Warner Bros. Additionally, Village Roadshow struggled with a costly independent film studio launched in 2018, which has not yielded any profits. The pandemic and a decline in demand also hurt the film industry. Furthermore, in December, the Writers Guild of America prohibited its members from working with Village Roadshow due to unpaid contributions.