Technicolor, the visual effects company known for its work on films from Disney's 1940 classic Pinocchio to the upcoming 2024 release Mufasa The Lion King, collapsed into administration in the º£½ÇÊÓƵ with debts exceeding £100m.
Interpath was appointed in February to manage the administration process, which resulted in the majority of Technicolor's over 440 º£½ÇÊÓƵ employees being made redundant, as reported by .
Prior to the collapse, the company's directors had been seeking a buyer for the business without success. Technicolor, established 110 years ago and credited with its first film in 1917, owned several visual effects studios including MPC, Mikros Animation, and The Mill, operating in the US, º£½ÇÊÓƵ, Canada, and India.
Among its accolades, Technicolor's The Mill won an Oscar in 2001 for its work on Gladiator, while MPC recently delivered remakes of Disney's The Lion King and Jungle Book. Its recent projects include Kraven the Hunter, Young Woman and the Sea, and Emilia Perez.
According to Interpath's report to Companies House, Technicolor's secured creditor, GLAS, was owed around £92m at the time of administration, with it remaining "uncertain" whether GLAS will recoup any of its money.
Technicolor's employees, termed as ordinary preferential creditors, are collectively owed £1.2m, with the administrator anticipating they will receive a payout.
HMRC, holding the position of a secondary preferential creditor, is reportedly due approximately £5.8m and is anticipated to recoup a portion of these funds.
Conversely, unsecured creditors, who are collectively owed £12.7m, are deemed "highly unlikely" to see any return on their investment.
