EXCLUSIVE: The production entity behind the troubled British independent movie Angels In The Asylum, featuring Simon Pegg, has officially entered into Chapter 11 bankruptcy proceedings.
AITA Films Limited has announced plans to bring in Debenhams Ottaway, a legal firm, to manage its administration. This decision comes after the revelation by Deadline last month that the production of Angels In The Asylum was suspended mid-shoot due to financial issues.
In the UK, directors can initiate administration for a company if it becomes unable to meet its debt obligations. It has been previously reported by Deadline that the 150 crew members of Angels In The Asylum are currently owed around £600,000 ($776,000) in unpaid wages, with suppliers also facing significant losses.
The administration resembles Chapter 11 bankruptcy protection in the U.S., with one key difference: in the UK, the appointed administrators, in this case, Debenhams Ottaway, will assume control of AITA Films’ operations. They will work to reorganize the company’s finances to enable payment to creditors.
This process provides AITA Films with protection against legal actions from creditors and prevents any forced closure of the company by them. Rob Sorrenti, who is both the producer and director of Angels In The Asylum, is currently the sole director of AITA Films.
In a public statement, Sorrenti and his production partner Heather Greenwood mentioned, “Appointing an administrator was a necessary precaution. We are hopeful this situation is temporary as we strive to secure additional funding for our film.”
Late last month, Sorrenti and Greenwood communicated to their team that they are actively seeking financial solutions that will satisfy the debts to creditors and also allow them to finalize the film’s production. They stated, “Following thorough discussions with our stakeholders, we are convinced that maintaining AITA Films Ltd operational is the optimal strategy to ensure all debts are cleared.”
Disagreements exist about the causes of Angels In The Asylum’s financial troubles. Sorrenti and Greenwood claim that expected funds from a deal with Parkland Pictures did not come through. Meanwhile, John Cairns, CEO of Parkland Pictures, clarified to Deadline that his firm was never committed to financing the project beyond its role as a sales agent.
Affected crew members have expressed their anger, criticizing the management for poor communication and giving false hopes. One crew member commented, “It feels like they risked our livelihoods by banking on funding that was never confirmed, all in their rush to get this film produced.”
The film, inspired by real events, features a notable cast including Katherine Waterston, Minnie Driver, and others, and revolves around the true story of women isolated at Surrey’s Long Grove Asylum in the 1930s due to typhoid fears. Despite the production challenges, those involved have praised the script and the initial footage.
While Simon Pegg serves as an executive producer, he has not financially invested in the film nor has he received any payment for his involvement so far. Steven Daldry, known for his work on The Crown, is also listed as an executive producer.
Daniel Hayes is a business journalist with a focus on market trends, startups, and corporate strategies.
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