A Delaware bankruptcy court judge today set a May 16 deadline for bidders interested in making a run at Village Roadshow, and a May 20 auction date if more than one party shows up.
The number to top is $416.5 million offered by Alcon Entertainment, which was approved by Judge Thomas Horan today as a so-called stalking horse bidder. Alcon topped an earlier $353 million stalking horse bid from Content Partners when the producer and financier of a string of big film titles filed for bankruptcy a month ago. The stalking horse sets a floor for others and, in this case increases “the likelihood that, given the circumstances, the best possible price for the Library Assets will be received,” the judge wrote in a filing approving the sale process.
The company must file notice within one day after the bid deadline on whether it will hold an auction or sell to Alcon. The judge set a tentative June 11 hearing date to consider the transaction.
In play is Village Roadshow’s library of 108 feature films, including intellectual property, distribution rights and cash flows along with rights to produce, distribute and otherwise exploit remakes, sequels, and prequels, which the debtors co-own with studio partners – mainly Warner Bros. The filing lists all films from The Matrix, Joker and Analyze This to Miss Congeniality, Zoolander, Oceans Eleven and Sherlock Holmes.
Village Roadshow’s assets also include a nascent studio business centered around the development and production of its own independent films and scripted and unscripted television series. That business was never profitable and is where the company hit a financial speed bump, alongside the thornier issue of a legal fight with its longtime partner WB.
Prospective bidders for Village Roadshow can now seek access to an electronic data room with financials for due diligence. The company is entertaining offers for all or parts of its business.
