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. RHI Entertainment has produced telefilms and miniseries for Hallmark Channel, Syfy and Spike TV, among others.
"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.