Deluxe Entertainment Services Group, the Hollywood production services company that had been sponsored via billionaire Ron Perelman, filed for a prepackaged Chapter eleven financial ruin safety Thursday.
The enterprise’s lenders will assume control of the firm, which also owns postproduction companies EFILM, Company 3 and Encore, as well as VFX residence Method.
Last month, the organization and a majority of its lenders had agreed to debt for inventory swap that might see the business enterprise hand control over to its lenders. “All parties worried determined that the best way to enforce the debt-for-fairness exchange is through a controlled, green court-supervised method, and today the Company took steps to start that manner,” the enterprise said in an assertion.
When the monetary restructuring is complete, it will reduce the organization’s long-term debt via well extra than 1/2 and raise $115 million of recent financing, the business enterprise said.
“We had been running to put Deluxe in a sturdy economic role, and those steps are the nice and maximum green way to finalize and put into effect the comprehensive monetary restructuring,” stated John Wallace, CEO of Deluxe in an announcement. “This procedure will permit us to strengthen our stability sheet and gain the monetary flexibility and sources to power investment in key growth strategies with no disruption to our business and no effect to our employees, customers, providers, and different business partners.”
Deluxe became founded in 1915 by way of William Fox and was obtained by way of Perelman’s MacAndrews & Forbes protecting agency in 2006.
As the organization’s economic wishes hit a tipping factor, however, MacAndrews & Forbes opted to discontinue its support, liberating an assertion in August mentioning that it “determined no longer to participate in the refinancing,” leading to the restructuring.