Village Roadshow, Warner Bros. to Delay Fight Over Matrix Debt

The two movie studios behind The Matrix films are putting off fighting over as much as $100 million in unpaid debt related to the movies until after an auction for the film library of bankrupt filmmaker Village Roadshow Entertainment Group.

Lawyers for Village Roadshow and its former movie-making partner, Warner Bros. Entertainment Inc., agreed that the auction can move forward before the two sides further dispute debt leftover from the last Matrix film.

“I don’t think it affects the sales process,” Warner Bros. lawyer Scott Drake told the judge overseeing Village’s insolvency case on Wednesday. Village Roadshow lawyer ...