Rhythm & Hues To File For Chapter 11 Bankruptcy Today [UPDATED]

The company had been struggling financially in recent months, and had expected to be acquired by Indian company Prime Focus. Variety notes that while the Prime Focus deal has fallen through, “several buyers reported interested in acquiring the company out of bankruptcy.”

On Monday afternoon, Rhythm & Hues Feature Film Division president Lee Berger released the following statement:

“Tonight R&H is filing for Chapter 11 reorganization in the U.S. Bankruptcy Court and hope to be in front of a Bankruptcy judge in the next couple days. In the meantime, all of our offices remain open, our clients are aware of the process; we have obtained commitments for financing to complete projects in house at the quality level the studios have come to expect. Following the filing, R+H will be seeking to secure financing for future growth. I believe that we are going to come out of this situation stronger, more efficient, and as prolific as we are now.”

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[UPDATE 2—Monday evening]: The most comprehensive article about the current situation at Rhythm & Hues is this Variety piece by David S. Cohen.

[UPDATE—Monday morning]: The VFX Law blog has a good primer that explains how the bankruptcy affects employees and what workers’ rights are in such a situation.