JS Communications has finally settled for a reduced break-up fee in the drawn-out Rhythm & Hues bankruptcy saga. It’s been two months since troubled VFX house R&H sold out of bankruptcy to Prana Studios-led Holdings, LLC following a roller-coaster closed-door auction. At issue was the court-approved $425K fee promised to JS Communications as stalking horse bidder if a qualified rival beat them out for the Life Of Pi company, which JS was eyeing to buy. But in a hotly contested development, JS failed to meet a deadline to submit its bid (exec David Shim told me then that his dealings with Fox and Universal left him less than optimistic about buying R&H without future work assurances). Per a court document filed this week (read it here), JS will receive a $300K break-up fee. If approved in court June 4, that should put the R&H saga to bed for the time being; multiple class action lawsuits against R&H filed by former employees have yet to be settled.
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