The distribution unit of Inferno Films, which produced Brad Pitt’s latest film “Killing them Softly,” filed for Chapter 11 bankruptcy
The Wall Street Journal reported that Inferno Distribution LLC filed for debt protection in a Los Angeles bankruptcy court, citing litigation as their reason for insolvency.
The bankruptcy filing does not include the production arm, Inferno International LLC, which produced the films, “The Kids are Alright,” “Killer Elite” and most recently, “Killing them Softly,” which premiered at Cannes this May.
Inferno Distribution said their filing came in the wake of a “large judgment” related to litigation over a Ryan Reynolds’s film, “Just Friends.” Inferno is in the process of appealing the judgment.
Inferno Distribution licenses and grants distribution rights for films in foreign countries. They also work with private equity firms and other investors to obtain financing for future projects.
Major creditors for Inferno Distribution include the Screen Actors Guild and the Director’s Guild of America.
“Killing Them Softly,” will be distributed in the U.S. and Canada by Weinstein Co.
A legal dispute can cripple a business and without the help of a bankruptcy attorney, they could face financial ruin.
A Chapter 11 filing allows a business to stop the collection activities of their creditors while they continue operations. With the right reorganization plan, which must be approved by creditors, the troubled business can satisfy their debts and emerge solvent.
