Columbia Pictures Television, the Disney-MGM Studios and Sony Electronics have filed an involuntary bankruptcy petition against Production Services Intl., which makes canceled firstrun sketchcom “The Newz.”
The creditors are seeking to recoup more than $1.65 million in a petition filed March 1 in an Orlando bankruptcy court.
Columbia TriStar TV Distribution blamed “unforeseen production complications” and low ratings when it pulled the plug on the series the same day it filed suit.
CPT is seeking $1.55 million, Disney-MGM Studios – where the program was taped – is asking for $97,924 and Sony wants $14,221.27 from PSI, according to legal documents.
The low-rated series would have had a tough time surviving anyway in the aftermath of the February sweeps.
But CTTD, which will release stations from their contractual agreements to carry the show on April 1, had been seeking to salvage the problem program for at least the remainder of this season.
CPT apparently is hoping to use some of the proceeds from an involuntary bankruptcy to pay the actors.
CTTD also wanted to ease exec producer James McNamara, president-CEO of PSI parent Celebrity Entertainment Inc., out of the show. McNamara had been blamed for many of the problems with the show, but has not returned calls to respond to the allegations.