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Strapped Indie Producer Village Roadshow Files For Bankruptcy
Troubled Village Roadshow has filed for Chapter 11 in a Delaware court, citing ongoing arbitration with long-time partner Warner Bros. as the main reason for its bankruptcy.
The company said it tried to sell itself last year but uncertainty surrounding the pending arbitration made that impossible, forcing it to file for bankruptcy. It said the WB arbitration has generated more than $18 million 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,” West Hollywood-based Village Roadshow said in its filing today by Keith Maib, Chief Restructuring Officer Two primary issues led to the decline in the Company’s financial position: (1) the WB Arbitration, which has thwarted the Company’s most profitable business line; and (2) the failed and costly endeavor into the creation and production of independent films and scripted and unscripted television series (the “Studio Business”), which was never profitable.
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