Warner Bros. has no basis to sue senior noteholders of Village Roadshow Entertainment Group USA Inc. because the media giant is being paid in full from the studio’s bankruptcy proceedings, the lenders said.
Warner Bros. hasn’t suffered any economic damages from Village Roadshow’s Chapter 11 proceedings and should thus be denied its bid for standing to sue over pre-bankruptcy transfers of derivative film rights shared between the studios, a group of noteholders said in a filing Wednesday with the US Bankruptcy Court for the District of Delaware.
The prospective litigation focuses on inter-company asset transfers by Village Roadshow in 2023 ...