Inverness Settlement Paves Way for Film Sale

Inverness Distribution Ltd. won bankruptcy-court approval of a settlement that clears the way for it to sell its international distribution rights to such films as  “Robin Hood: Prince of Thieves” and “Major League.”

Court papers show the Manhattan bankruptcy court on Tuesday approved a settlement of disputes over licensing rights to Inverness’s primary asset: the library of films that it’s allowed to distribute outside of the U.S. and Canada.

The settlement essentially frees the future buyer from a prebankruptcy deal whereby Inverness transferred its right to license the films in its library to an affiliate of Morgan Creek Productions Inc., which produced many of the films that Inverness distributes.

Now, Inverness may start searching for a buyer for the film library. It holds the international distribution rights to a few well-known films: besides “Major League” and “Robin Hood,” which has spurred litigation, there is also “The Last of the Mohicans.”

Most of the movies, however, aren’t exactly what you’d call blockbusters. To wit: “Georgia Rule,” a Garry Marshall-directed movie starring Jane Fonda, Felicity Huffman and Lindsay Lohan, as well as John Travolta’s science-fiction flop “Battlefield Earth.” You can see a full list of films here.

Inverness hasn’t sought court approval yet to launch a sale process, but it has time to do so. It faces a June 30 deadline to file a restructuring plan describing how it would use the sale proceeds to pay creditors, though it can seek an extension of that deadline.

Write to Jacqueline Palank at [email protected]. Follow her on Twitter at @PalankJ.