The Inverness Distribution Ltd filed for bankruptcy protection in a New York court. The Bermuda based company linked to the producers of Young Guns and Last of the Mohicans. The company changed its name in 2010 and works with the studios that produced Ace Ventura: Pet Detective and Robin Hood, Prince of Thieves. Inverness states declining royalties as their reason for the bankruptcy filing.
The company filed under Chapter 15, which gives them protection from creditor lawsuits. Their debt is estimated to be as much as 100 million. Most of the assets Inverness hold lies in contractual agreements with Morgan’s Creek to distribute their films to theatres, homes and television through third parties like Warner Brothers and NBC Universal. Payments of royalties dropped over 70 percent for some of the film libraries.
Inverness renegotiated some of their contracts without notifying their lenders. They join Blockbuster in bankruptcy court.
Debt can pile up and become burden that cannot be relieved without assistance. A bankruptcy attorney can offer sound advice for those businesses or individuals who face debts they cannot handle. There are a number of reasons that people become unable to pay off their debt. In the case of Inverness it is attributed to declining revenue, which is a fate many businesses are facing. For whatever the reason, a bankruptcy lawyer can begin the process to financial security. The expertise of a bankruptcy attorney can simplify the process.