The Harvey Weinstein scandal continues to overshadow the film industry, with the new Mary Magdalene drama from Australian director Garth Davis the latest to hit a roadblock.

As it prepares for its Australian and European release, the biblical story won't show in US cinemas after its distributor, The Weinstein Company, announced it would declare bankruptcy in the wake of multiple sexual harassment allegations against its founder.

Davis, best known for the Oscar-nominated film Lion, said the film's producers were scrambling to sort the issue out so it could be delivered to an American audience.

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"The producers are dealing with that every day," he said, adding the fate of the Weinstein Company was still unknown.

"One minute there is a sale going through and the next minute they're filing for bankruptcy, so it can change almost on the spot."

The Mary Magdalene film is a new take on the New Testament figure and tells the story from her point of view, challenging the long-held interpretation of Mary simply being a prostitute.

Titian's Penitent Magdalene, circa 1565. ( Wikimedia Commons )

It stars Rooney Mara in the titular role and Joaquin Phoenix plays the part of Jesus Christ.

Davis said it was a powerful, female-led film and it was "ironic" it had been caught up in the sexual harassment scandal that besieged Weinstein and Hollywood.

"When we started, none of this was happening, but we could feel it in the zeitgeist," he said.

"And then ironically North American distributor Harvey Weinstein got found out and triggered this massive #MeToo movement."

The film's production company, See-Saw Films, is hoping a distribution deal can be struck soon.

Davis said it was disappointing to see the project stalled like this.

"You never know what life throws at you," he said.

"When you are making films, you are always thrown challenges and I wasn't seeing this one coming.

"So I'm just very determined to make sure Mary gets out there, because it's a story that can be enjoyed by everybody."