Actor Kevin Spacey has been appointed chairman of Relativity Media’s film-making division as part of the former powerhouse studio’s attempt to reorganise and escape Chapter 11 bankruptcy.

Spacey, a best actor Oscar winner for American Beauty and artistic director of London’s Old Vic theatre between 2003 and 2015, was given the post by Relativity’s CEO Ryan Kavanaugh after the company acquired Spacey’s Trigger Street Productions, which is behind the Netflix TV hit series House of Cards. Spacey’s partner in Trigger Street, Dana Brunetti, a successful producer in his own right on films such as The Social Network, Captain Phillips and Fifty Shades of Grey, has been named president of the studio.

Founded in 2004, the well-funded Relativity Media quickly became a major Hollywood player, with the flamboyant Kavanaugh its figurehead. However, despite its participation in a number of hit films, including Les Misérables, 21 Jump Street and Bridesmaids, it filed for Chapter 11 bankruptcy in July 2015 with liabilities of $1.2bn. The company needs approval from a US bankruptcy court for its restructuring to resume normal operations.

In a statement, Spacey said: “This move with Relativity will be proof for some that we really are crazy ... Having run an independent production company to now be able to run a studio is a great challenge, and I’ve learned that in the end it’s the risk takers that are rewarded.”

Brunetti suggested the pair, now responsible for overseeing all of Relativity’s creative film content, will not be seeking out large-scale projects. He said: “While other studios are focusing on tentpoles and franchises, there is a void with an eager audience for films that are character-driven with great storytelling that can be made at a reasonable budget.”

A number of films have been trapped in distribution limbo by Relativity’s problems, including heist comedy Masterminds featuring Zach Galifianakis and Kristen Wiig.