Annapurna Pictures has resolved its debt problems after weeks of negotiations between top financial organizations and CEO Megan Ellison's father, Oracle billionaire Larry Ellison.
Variety reports that Annapurna has resolved more than $200 million in debt. In the deal, "participants in the studio’s revolving credit facility will receive roughly $0.82 on the dollar."
A few weeks ago, reports indicated the studio was close to filing Chapter 11 bankruptcy due to the debt. Ellison publicly denied the claims in an internal memo.
Annapurna's credit line was originally set up in 2017 and used primarily for marketing and promotions for high-profile films like "Vice," "Destroyer," and "The Sisters Brothers."
The company will not seek a new line of credit; instead, it will seek financing partners on a case-by-case basis or be wholly financed by Ellison herself.
Annapurna has built a reputation for producing prestige dramas like "Zero Dark Thirty" and "American Hustle." The company's move into distribution hasn't been as successful. It did have a hit with last year's "Sorry to Bother You," but "The Sisters Brothers" cost $40 million and earned just $3 million at the domestic box office.
There is a light at the end of the tunnel. Earlier this year, Annapurna partnered with MGM to create the create the United Artists Releasing banner, which will present the next James Bond movie "No Time to Die."