Technicolor: Visual effects studio owed over £100m ahead of collapse
More than £100m was owed by Technicolor, the visual effects company which worked on films ranging from Disney’s 1940 Pinocchio to 2024’s Mufasa The Lion King when it collapsed into administration in the UK, it has been revealed.
Interpath was appointed to oversee the process at the business in February in a move which also saw the majority of the more than 440 people it employed in the UK made redundant.
Before the collapse, Technicolor’s directors had been looking to sell the business but a buyer was not found.
Technicolor was established in 110 years ago and worked on its first film in 1917.
The group owned several visual effects studios including MPC, Mikros Animation and The Mill, with operations in the US, UK, Canada and India.
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.
Recent projects include Kraven the Hunter, Young Woman and the Sea and Emilia Perez.
How much did Technicolor owe?
According to Interpath’s report to Companies House, Technicolor’s secured creditor, GLAS, was owed around £92m when it entered administration.
Interpath said it is “uncertain” whether GLAS will receive any of its money back.
Technicolor’s employees, terms as ordinary preferential creditors, are owed a collective £1.2m.
The administrator said it anticipates they will receive a payout.
HMRC, known as a secondary preferential creditor, is estimated to be owed about £5.8m. It is also expected it will get some of its money back.
Unsecured creditors are, however, “highly unlikely” to receive a dividend. They are owed a collective £12.7m.