Chennai, Sep 3 (IANS): The Tamil Nadu Film Producers Council (TFPC) on Wednesday announced that it will not allow the release of any new film across all languages in the state until the loss incurred on superstar Rajinikanth's "Lingaa" was settled.

In an official statement, the council said no new film will be allowed to release in theatres in the state from Friday.

It also announced that all films that are currently running in cinemas in the state will be removed if the matter is not settled by September 10.

It all started with actor Vishal Krishna Reddy-starrer "Payyum Puli", produced by Vendhar Movies, who had distributed "Lingaa".

Last week, "Paayum Puli" was issued a red card, as Vendhar Movies was yet to settle losses incurred by "Lingaa".

"Only half of the promised settlement has reached the distributors of 'Lingaa'. Rajinikanth and the film's producer Rockline Venkatesh managed to settle the loss, but distributors from North and South Arcot, Chengalpet and Trichy are yet to receive the compensation," a member from the Tamil Nadu Theatres Owners Association told IANS.

The council is expected to hold an emergency meeting on Thursday to look into the matter.