‘Joker’ and ‘The Matrix’ Producer Village Roadshow Files for Chapter 11 Bankruptcy

variety.com:

Alex Ritman 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.

Village Roadshow had sued for break of contract after WB released the feature on Max the same day as theaters. “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 on Monday read. “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.” Like many entertainment companies, Village Roadshow — based in both the U.S.