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

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Mar 17

Village Roadshow Entertainment Group, the production company behind The Matrix, Joker, and The Lego Movie, has filed for Chapter 11 bankruptcy in Delaware. The move comes amid financial struggles and an ongoing legal battle with Warner Bros. over the release of The Matrix Resurrections.

According to court documents, Village Roadshow lists $223.8 million in asset-backed secured notes and $163.1 million in senior secured debt. The company attributes its financial troubles to a combination of pandemic-related production slowdowns, the Hollywood writers’ strike, and costly legal disputes.

A Legal Battle with Warner Bros.

At the heart of Village Roadshow’s crisis is its legal dispute with Warner Bros. over the simultaneous theatrical and streaming release of The Matrix Resurrections in 2021. The company sued WB for breach of contract, arguing that the Max release significantly impacted the film’s box office performance and diminished its value.

“The WB arbitration has caused the company to incur 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,” the filing states.

Further complicating matters, Village Roadshow argues that Warner Bros. has deliberately restricted its ability to co-finance future projects, despite longstanding agreements granting them co-financing rights on as many as 15 upcoming films. WB, in turn, claims Village Roadshow failed to provide a required payment exceeding $100 million for The Matrix Resurrections. The case remains in arbitration, with a hearing scheduled for April 25.

A Struggle to Stay Afloat

Founded in 1997, Village Roadshow has produced over 100 films, including Mad Max: Fury Road, Ready Player One, and Ocean’s Eleven. After selling a controlling interest to Falcon Strategic Partners and Vine Media Opportunities in 2017, the company attempted to develop its own film and TV projects outside of its Warner Bros. partnership. However, none of these projects proved profitable.

By early 2024, Village Roadshow’s liquidity crisis had reached a breaking point, forcing the company to explore a sale. The company has since reduced its workforce from 45 employees to just 11 as it narrows its focus on completing the sale process.

A Potential Buyer on the Horizon

In its bankruptcy filings, Village Roadshow revealed that CP Ventura LLC, an entity tied to Content Partners LLC, has agreed to purchase its film and TV library for $365 million. Content Partners specializes in acquiring media libraries and is led by industry veterans Steven Kram and Steven Blume.

Despite its storied history, Village Roadshow’s future remains uncertain as the company navigates its sale and the ongoing arbitration battle with Warner Bros.