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 include (click on the title of any document for more information or to purchase):
- Joint Prepackaged Plan of Reorganization of RHI Entertainment, Inc. and Affiliated Debtors
- Disclosure Statement with Respect to Joint Prepackaged Plan of Reorganization of RHI Entertainment, Inc. and Affiliated Debtors Dated November 1, 2010 filed by D. J. Baker on behalf of RHI Entertainment, Inc.. (Attachments: # 1 Appendix A – Plan of Reorganization# 2 Appendix B – Organizational Chart# 3 Appendix C – Liquidation Analysis# 4 Appendix D – Valuation Analysis# 5 Appendix E – Financial Projections)
- Declaration of Robert A. Del Genio, Strategic Planning Officer of RHI Entertainment, Inc., in Support of Chapter 11 Petitions and First Day Pleadings
- Motion to Authorize Motion of the Debtors for Entry of an Order Authorizing the Debtors to (I) Continue Performing Under Film Financing Agreements, (II) Provide Credit Support in Connection with Film Financing Agreements and (III) Enter into Film Financing Agreements in the Ordinary Course of Business
- Limited Comment of U.S. Bank National Association Regarding First Day Motions filed by Daniel Shamah on behalf of U.S. Bank National Association
For access to all major pleadings filed in this case, please visit http://www.chapter11cases.com/RHI-Entertainment-Inc_c_1685.html