×
You will be redirected back to your article in seconds

Global Road on Verge of Bankruptcy Filing (EXCLUSIVE)

Global Road Entertainment, the fledgling studio that sought to straddle the U.S. and China, will soon declare bankruptcy, sources tell Variety. A filing could come as early as this week.

The company has been on the brink of insolvency since Bank of America and other lenders seized control of the studio two weeks ago. The banks have since laid off nearly 50 employees and tried to sell several finished films.

Donald Tang, a former Bear Stearns banker based in China, formed the company a year ago when his Tang Media Partners acquired Open Road Films. Tang had purchased foreign sales and production company IM Global the year prior, and aimed to combine the two to create a global production and distribution firm. Tang has since been seeking to raise additional financing, either from his Chinese backers or other sources. He has struck out. Tang Media Partners had 144 employees before staff reductions took place.

Even as Global Road’s film side of the business has been taken over by lenders, its television and international sales groups have continued to operate independently. It’s unclear how Global Road will approach bankruptcy, but knowledgeable sources believe it is unlikely to reorganize. One scenario being discussed would have the company liquidate its movie assets, and sell its sales and television businesses.

Open Road was struggling at the time it was sold to Tang, and in need of a cash infusion to release its movie slate. The studio debuted “Hotel Artemis” in June, which grossed just $6.7 million. Its most recent pic, “A.X.L.,” bombed with a $2.8 million showing in its opening weekend.

In early August, Global Road removed its next film, “City of Lies,” from the release schedule. At the time, there was speculation that the movie was pulled due to the erratic behavior of its star, Johnny Depp. However, lender Bank Leumi filed suit last week, alleging that the true reason was that Global Road could not afford to pay the $10 million it would cost to promote the film. The bank is seeking to recoup millions in minimum guarantees from Global Road and Miramax, which holds the TV rights to the movie. Global Road is said to be struggling under the weight of other debts as well.

A spokesman for Global Road declined to comment.

More Film

  • Agustina San Martin Talks Cannes Special

    Agustina San Martin Talks Cannes Special Mention Winner ‘Monster God’

    CANNES – An exploration of the ramifications of God, “Monster God,” from Argentina’s Agustina San Martín, took a Special Mention – an effective runner’s up prize – on Saturday night at this year’s Cannes Film Festival short film competition. It’s not difficult to see why, especially when jury president Claire Denis own films’ power resists [...]

  • Atlantics

    Netflix Snags Worldwide Rights to Cannes Winners 'Atlantics,' 'I Lost My Body'

    Mati Diop’s feature directorial debut “Atlantics” and Jérémy Clapin’s animated favorite “I Lost My Body” have both been acquired by Netflix following wins at Cannes Film Festival. “Atlantics” was awarded the grand prix while “I Lost My Body” was voted the best film at the independent International Critics Week. The deals are for worldwide rights [...]

  • Stan Lee, left, and Keya Morgan

    Stan Lee's Former Business Manager Arrested on Elder Abuse Charges

    Stan Lee’s former business manager, Keya Morgan, was arrested in Arizona Saturday morning on an outstanding warrant from the Los Angeles Police Department. The LAPD’s Mike Lopez confirmed that the arrest warrant was for the following charges: one count of false imprisonment – elder adult; three counts of grand theft from elder or dependent adult, [...]

  • Moby attends the LA premiere of

    Moby Apologizes to Natalie Portman Over Book Controversy

    Moby has issued an apology of sorts after writing in his recently published memoir “Then It Fell Apart” that he dated Natalie Portman when she was 20 — a claim the actress refuted. “As some time has passed I’ve realized that many of the criticisms leveled at me regarding my inclusion of Natalie in Then [...]

  • Bong Joon-ho reacts after winning the

    Bong Joon-ho's 'Parasite' Wins the Palme d'Or at Cannes

    CANNES — The 72nd edition of the Cannes Film Festival wrapped with jury president Alejandro González Iñárritu announcing the group’s unanimous decision to award the Palme d’Or to South Korean director Bong Joon-ho for his sly, politically charged “Parasite.” Following last year’s win for humanistic Japanese drama “Shoplifters,” the well-reviewed Asian thriller represents the yin [...]

  • Invisible Life Brazilian Cinema

    Cannes Film Review: 'The Invisible Life of Eurídice Gusmão'

    A “tropical melodrama” is how the marketing materials bill “The Invisible Life of Eurídice Gusmão.” If that sounds about the most high-camp subgenre ever devised, Karim Aïnouz’s ravishing period saga lives up to the description — high emotion articulated with utmost sincerity and heady stylistic excess, all in the perspiring environs of midcentury Rio de [...]

  • Best Movies of Cannes 2019

    The 10 Best Movies of Cannes 2019

    The Cannes Film Festival is too rich an event to truly have an “off” year, but by the end of the 72nd edition, it was more or less universally acknowledged that the festival had regained a full-on, holy-moutaintop-of-art luster that was a bit lacking the year before. It helps, of course, to have headline-making movies [...]

More From Our Brands

Access exclusive content