MANHATTAN (CN) - Inverness Distribution, formerly known as Morgan Creek International, has filed for Chapter 11 bankruptcy in a federal bankruptcy court in Manhattan, listing more than $50 million in debts, eight months after first filing for bankrupcy in Bermuda.
Former president and sole shareholder James Robinson produced "Ace Ventura: Pet Detective," "Last of the Mohicans," "Young Guns" and "Robin Hood: Prince of Thieves." "Ace Ventura" and "Last of the Mohicans" are among films belonging to the company's international library.
The Bermuda-based company's biggest creditors are the French bank Societe General, ING Bank NV and Bank of Ireland, according to court documents.
Courts in Bermuda appointed liquidators to take over the company last May after it first filed for Chapter 15 protection, reportedly intended to shield Inverness from creditor lawsuits in the U.S.
According to court filings accessed by the L.A. Times, Inverness is "deeply insolvent, has breached its contractual obligations and was managed by individuals whose interests conflict with those of Inverness."
Morgan Creek Spokesman Greg Mielcarz told the Hollywood Reporter in May that bankruptcy might have only a "minor impact on the company and would not stop it from moving forward with projects such as its long-gestating Tupac Shakur biopic or the planned restart of the "Major League" franchise."
Mielcarz also said the Chapter 15 bankruptcy could result "in the loss of certain distribution rights in certain foreign territories on some of our older films."
Courthouse News was not able to verify whether those statements will apply after the Chapter 11 filing.
TheWrap.com reported that the new status will let creditors sue Inverness in the United States.
"If, for example, the liquidators want to sue for receivables owed -- or for something more complicated, such as improper transfer of company assets -- in the United States, they will be able to under Chapter 11 protection," wrote TheWrap.com reporter Joshua Weinstein.