**Village Roadshow Entertainment Group Files for Bankruptcy Amid Financial Struggles**

**Village Roadshow's partnership with Warner Bros soured, leading to a substantial legal dispute that contributed to its financial downfall.**

Village Roadshow Entertainment Group, the renowned production company behind iconic franchises such as The Matrix, Ocean's Eleven, and Joker, has made the decision to file for bankruptcy protection in the United States, as revealed in court documents submitted to a Delaware court. The company attributes its fiscal woes to a contentious legal dispute with its longtime collaborator Warner Bros (WB) and a failed venture into independent film production, which proved to be financially detrimental.

To alleviate its mounting financial strain, Village Roadshow is proposing the sale of its extensive film library for an estimated $365 million (£281 million). However, the company's current debt load is projected to be between $500 million and $1 billion, presenting a challenging situation as it seeks to navigate through bankruptcy proceedings.

The relationship between Village Roadshow and WB turned sour early in 2022 after the release of The Matrix Resurrections, available on HBO Max. Village Roadshow alleges that Warner Bros restricted its access to rights for sequels and prequels connected to their collaborative projects. Chief restructuring officer Keith Maib noted in the court filings that the arbitration with Warner Bros has necessitated more than $18 million in legal fees, with the majority of this debt still outstanding.

Mr. Maib further emphasized that the ongoing conflict has "irreparably decimated" the partnership, ending what was viewed as the most profitable aspect of Village Roadshow's successful history. Compounding these issues, the company attempted to expand into independent film production with a studio launched in 2018, but none of the projects generated a profit.

As with many in the entertainment sector, Village Roadshow has also been adversely affected by decreased demand stemming from the pandemic and disruptions caused by the ongoing strikes among Hollywood actors and writers, which began in May 2023. In December, the Writers Guild of America took action against Village Roadshow, prohibiting its members from collaborating with the firm due to allegations of unpaid dues.