The New Montreal FilmFest has gone into bankruptcy protection, after lasting only one year.

The Festival announced that it was folding in February after a disastrous season.

Bankruptcy protection will give festival organizers time to negotiate with their creditors over what is reported by Canadian Press to be a deficit of $1.1 million.

The FilmFest's biggest creditor is the Spectra Team which organized the event, but former director of programming Moritz de Hadeln claims he is owed $65,000. Quebec's SODEC (Société de développement des entreprises culturelles), which granted the festival $100,000, is another creditor.

SODEC and Telefilm Canada had backed the new festival because they were dissatisfied with the existing Montreal World Film Festival. After supporting the World Film Festival for years, the two agencies withdrew their support amidst great controversy.

Culture Minister Bev Oda has questioned Telefilm Canada about why it backed the festival. Quebec is also investigating the role of SODEC.