RHI Entertainment Files New York Chapter 11 Cases (PINK:RHIE)


RHI Entertainment, Inc. and a host of affiliates (PINK:RHIE), providers of "original long-form television content, including domestic made-for-television movies and mini-series," voluntarily filed for chapter 11 bankruptcy protection in New York on Friday. The companies' assets include a large library of more than 1,000 titles (over 3,500 broadcast hours) of content such as made-for-television movies and mini-series. Customers include ABC, CBS, the Hallmark Channel, Lifetime, NBC and USA Network ION, the Syfy Channel, Starz/Encore, and Spike TV in the United States and large networks across the world.

The companies report that revenues "for the majority of films in their library" have decreased over the last two years and an independent annual valuation of the unsold rights to their film library decreased "signficant[ly]." These difficulties were coupled with the companies' inability to "license new movies and mini-series at prices that would cover the production and debt costs associated with the making of such films." However, the companies entered Friday's chapter 11 cases with an agreement on the terms of a prepackaged chapter 11 plan of reorganization which provides for existing public equity to be cancelled. RHI's first lien lenders would receive 99% of the equity in the reorganized companies and $300 million in new term loan obligations. RHI's second lien lenders would receive 1% of the equity in the reorganized companies, warrants representing 15% ownership on a fully-diluted basis, and a small fee and expense reimbursement ($250,000).

Key court filings to date are listed in the attached document. For access to all major pleadings filed in this case, please visit http://www.chapter11cases.com/RHI-Entertainment-Inc_c_1685.html

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Randall Reese, Restructuring Concepts LLC | Attorney Advertising

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