RHI Entertainment, producer and distributor of
made-for-TV miniseries and movies, has elected to file for Chapter 11
bankruptcy protection, the company announced Friday (Dec. 10).
The reorganization will reduce the company's debt
by $309 million and amend the payment terms of over $100 million in claims of
creditors including production partners and talent guilds.
"Today's action is the next step in the
process to reduce our debt and formulate a new capital structure that will
better enable us to invest in our business and continue to provide one of a
kind content to our customers," said RHI CEO Robert Halmi Jr., in a statement.
JPMorgan Chase and other lenders have committed a
$15 million debtor-in-possession Revolving Credit Facility, which will provide
RHI with the financing to uphold its commitments to suppliers, clients and
employees. Upon emerging from Chapter 11, the company expects a $25
million Revolving Credit Facility to give the company the necessary liquidity
to operate after the reorganization.
The company filed a series of motions in the hope of continuing to
operate their business and produce movies during the confirmation
process. RHI is looking for approval from the U.S. Bankruptcy Court for
the Southern District of New York to continue paying salaries and other benefits
to employees, as well as taxes and governmental fees.