A Debt Load Too Heavy to Bear
The production house is drowning in financial obligations:
- $223 million owed on a secured loan, with its film library as collateral
- $163 million in senior secured notes
- A mere $148,000 in available cash at the time of filing
To stay afloat, Village Roadshow is seeking approval for a $12.7 million debtor-in-possession (DIP) financing package from senior secured noteholders, including affiliates of Falcon Investments and the Ontario Teachers’ Pension Plan Board.
Of that financing, $7 million is fresh capital, while $5.7 million rolls up existing bridge financing extended in January.
Hollywood Strikes, COVID-19, and the Streaming Wars
Despite surviving the pandemic’s box office drought and Hollywood’s recent labor strikes, Village Roadshow’s financial foundation proved too fragile to withstand its legal war with Warner Bros. The shift to streaming—once seen as an industry disruptor—became a death knell for the company’s theatrical model.
Still, Village Roadshow’s intellectual property and distribution rights generate an estimated $50 million annually—assets CP Ventura aims to acquire. The company also holds valuable derivative rights, enabling the production of adaptations and spinoffs, often co-owned with Warner Bros.
