A bankruptcy judge on Friday delivered a defeat to Netflix Inc., which has fought for the right to release two films produced by Relativity Media LLC on its streaming platform ahead of their expected theatrical release, the Wall Street Journal reported on Saturday. Bankruptcy Judge Michael Wiles issued an order forbidding Netflix to release the films, saying a premature debut of the movies could prove “devastating” for the Hollywood studio that he released from chapter 11 earlier this year. Relativity’s fragile reorganization plan is dependent upon the theatrical release of its most anticipated films: “Masterminds,” a comedy starring Zach Galifianakis and Kristen Wiig, and “The Disappointments Room,” a horror film starring Kate Beckinsale. “It is my responsibility to ensure the plan I approved is carried out,” the judge said in court Friday. Allowing Netflix to proceed “would threaten the bankruptcy process…with devastating consequences to the plan and distributions” to creditors.
