Yari Film Group Forced to File Bankruptcy

Sadly, it's not the first time in 2008 that we've seen a movie studio facing huge financial issues. There was Warner Independent and Picturehouse, two boutiques that Time-Warner couldn't afford, and there was the drastic realignment of New Line (another Time-Warner off-shoot). Rogue Pictures, a Universal understudio, is currently on the chopping block. And now Yari Film Group has filed bankruptcy. According to The Hollywood Reporter, four of the company's creditors have taken action against Yari, "forcing the Los Angeles division of United States Bankruptcy Court to order Yari's releasing arm into Chapter 11." Bob Yari said in a statement that his company is disputing the debts, and that it will continue production of projects currently on its slate, though he did acknowledge that the Yari Film Group will make fewer movies.

"Our goal is to aggressively work towards reorganizing our debt so that we can become a stronger company. In the meantime, our production arms are distinct entities with separate financing which remain unaffected by the legal proceedings. We will go on functioning, making new films, covering our payroll and paying for employee benefits."

He blamed the current credit crisis and the bankruptcy of payroll outfit Axium for creating a perfect storm of financial turmoil for his company. Yari Film Group currently has two movies on the radar, with What Doesn't Kill You opening in New York this weekend, and Nothing But the Truth earning Kate Beckinsale a Golden Globe nomination. However, the performance of titles in the Yari Film Group catalog is spotty at best, which can't help at a time like this.

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No matter what we do bankruptcy should not be overlooked and must be prevented.