yari3.jpgBob Yari Film Group’s distribution arm has taken involuntary bankruptcy even though several films are still in its pipeline, the Hollywood Reporter reported.

That may come as a pleasure or at least satisfaction to Cathy Schulman, who was involved in a bitter lawsuit with Yari over producer credits on the Oscar-winning “Crash.”

Yari was pissed because he didn’t get to go onstage at the Oscars to collect the award.

Yari’s company says “What Doesn’t Kill You” and Rod Lurie‘s “Nothing but the Truth” are moving forward to qualify for Oscar nominations.

“Our goal is to aggressively work towards reorganizing our debt so that we can become a stronger company,” Yari said in a statement. “In the meantime, our production arms are distinct entities with separate financing which remain unaffected by the legal proceedings. We will go on functioning, making new films, covering our payroll and paying for employee benefits.”