Inverness Distribution, the Bermuda-based company formerly known as Morgan Creek International, has filed for Chapter 15 bankruptcy.
It is understood the company, owned by James Robinson, listed debt in the region of $100m with US Bankruptcy Court in Manhattan on May 3. Bloomberg first reported the development last week.
Sources with knowledge of the situation said the bankruptcy would result in the loss of certain distribution rights in select territories on older Morgan Creek productions.
The Bloomberg report said Morgan Creek International changed its name to Inverness Distribution in April 2010 and works closely with Robinson’s Morgan Creek Productions, the company behind such hits as Ace Ventura: Pet Detective and Robin Hood, Prince Of Thieves.
Last summer the company’s international sales team attended Cannes to talk up the Jim Sheridan thriller Dream House starring Daniel Craig, Rachel Weisz and Naomi Watts and a $90m sci-fi project Passengers, which was set to star Keanu Reeves but subsequently fell apart.
Morgan Creek Productions continues to press ahead with plans to assemble a Tupac Shakur biopic. Executives at Morgan Creek declined to comment.