Rhythm & Hues Hoping For Quick Sale

Bankrupt VFX house Rhythm & Hues must find a buyer by mid-March if it is going to recover out of Chapter 11, the company said in a court filing this week (read it here). The El Segundo-based effects studio, which won an Oscar last month for Life Of Pi after laying off 250 workers and seeking bankruptcy protection, tapped Houlihan Lokey two weeks ago to help with a sale as it continued to operate in the short term. Out of 80 entities contacted by the firm, at least 16 have signed nondisclosure agreements and commenced due diligence ahead of a sale hearing proposed for March 19. But according to court documents, the $17 million DIP loan from Universal and Fox and additional $4.9 million from Legendary allocated toward projects for each respective studio will run out by mid-month. If a buyer is not found by then, Rhythm & Hues says it will be unable (more…)

This article was printed from https://deadline.com/2013/03/rhythm-hues-bankruptcy-accelerated-mid-march-sale-447382/