Bankrupt ‘Matrix’ Studio Opposes Warner Bros. Dispute Request

The bankrupt production house behind the “Matrix” trilogy objected to a request from Warner Bros. Entertainment Inc. to lift a litigation pause preventing an arbitration from concluding.

Lifting the stay would affect efforts to close the sale assets, delay distributions to other creditors, and be unfair to other creditors, the estate, and stakeholders, Village Roadshow Entertainment Group USA Inc. said in a Thursday objection in the US Bankruptcy Court for the District of Delaware.

An $110 million reserve was established so an unliquidated Warner Bros. claim wouldn’t interfere with Village Roadshow’s efforts to sale its assets, the filing said. Eliminating ...