UK distributor Metrodome has agreed to hand back UK rights for Nick Broomfield's Battle For Haditha to sales company HanWay Films.
Each company has released the other's obligation with immediate effect.
The Channel 4-backed drama recreates a fight between US soldiers and Iraqi civilians in November 2005. Broomfield 's drama played in Toronto and London festivals and won him the best director prize in San Sebastian.
Broomfield said: 'This is an amicable decision and I consider Metrodome to be a great company. I look forward to continuing our on-going relationship working with them on many of my other films.'
Tim Haslam, CEO of Hanway Films noted that the companies continue to work on Sarah Polley's Away From Her, 'and we will continue our relationship with Metrodome.'
Peter Urie, CEO of Metrodome added: 'We wish Hanway Films and Nick Broomfield all the best on the release of Battle for Haditha and we look forward to working with them both again in the future.'
There was no word from HanWay if the company had another UK buyer in mind.Also, Metrodome didn't elaborate on reasons it agreed to return the film rights to HanWay.