Warner Bros. is weighing whether or not to pull two projects from bankrupt visual-effects company Rhythm & Hues Studios, multiple individuals with knowledge of the projects told TheWrap.
The studio is still assessing whether the company will be able to complete work on "300: Rise of an Empire" and "Black Sky," one individual told TheWrap. Despite the uncertainty, both films will be released as scheduled, with the "300" sequel hitting theaters on Aug. 2 and "Black Sky," a disaster film starring "The Hobbit"s' Richard Armitage, due out later this year.
The studio declined to offer a statement.
Rhythm & Hues has yet to complete $4.9 million of work on Warner Bros. films, court documents show. However, Rhythm & Hues' latest bankruptcy status update indicates that it still is working to resolve its issues and outstanding contracts with the studio.
"The disposition of these agreements has not been determined at this time," the filing reads.
Warner Bros.' hesitance to abandon Rhythm & Hues is surprising given that lawyers for the visual-effects company wrote in bankruptcy filings more than two weeks ago that the studio had "demanded" the return of its two films.
Universal Pictures and 20th Century Fox will lend Rhythm & Hues up to $17 million to continue working on two big-budget film releases while the visual-effects company is in Chapter 11 protection, according to court filings. Warner Bros. is not one of the studios offering a bridge loan.
The studio is distributing "Seventh Son," a medieval adventure film with Jeff Bridges, that has contracted Rhythm & Hues to do its visual-effects. Legendary Pictures is producing that film and it is lending the company nearly $5 million to complete its work.
Last week, Rhythm & Hues announced it has tapped financial advisory firm Houlihan Lokey to help it find a buyer. It also said it is moving quickly to complete a sale of its assets and has identified several parties that are interested in acquiring it.
Pamela Chelin contributed to this report.