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Visual Effects Company Faces Bankruptcy

Visual Effects Company Faces Bankruptcy

Posted By Peter Rasla & Associates, P.L.C. || 13-Mar-2013

VFX house Rhythm & Hues, located in Southern California has been recognized for its visual effects, even gaining numerous Academy Awards for its work. Its most recent award came just last month when they earned an Oscar for the work they did in the Life of Pi. Unfortunately, hard times have caused the company to face financial difficulty and they are dealing with a bankruptcy filing. Around 250 workers were laid off. The company was placed in a position where they needed to find a buyer by the middle of March in order to get through the Chapter 11 filing. The company was set to auction off after this action was approved by a California federal bankruptcy judge last Wednesday.

The Stalking Horse Bidder, as JS Communications has been referred to has sought to bid for the company and this was approved as of earlier today. Now that this step has been taken, the next one will continue to get the company out of Chapter 11 Bankruptcy. The company will go to the South Korean media company, JS Communications if no other bidders step in to take it. While R&H was hoping to get $675,000, JS could receive a break of $425,000 in the event that another bidder buys the auctioned company. It is yet to see what will happen with the rest of the case as it plays out.

Bankruptcy can be a way out for many people when it is implemented in the correct manner. It should also be done sooner than later and while many people avoid it hoping that the situation will be corrected, they end up putting themselves in a worse position by waiting so long. Get started today by first speaking with an Irvine bankruptcy attorney about your situation. Call Peter Rasla & Associates, P.L.C. or fill out a case evaluation form online.

Categories: Bankruptcy