RHI Entertainment Files Pre-Packaged Reorganization Plan

RHI Entertainment, Inc. (OTCBB: RHIE) (“RHI”), a leading developer, producer, and distributor of new made-for-television movies, miniseries, and other television programming, today announced that in response to the broad support received for its previously announced prepackaged plan of reorganization (as amended, the “Plan”) from lenders of record under the Company’s first lien credit agreement, as amended, and second lien credit agreement, as amended, the Company has elected to commence voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code for the Southern District of New York.

The recapitalization will strengthen RHI’s capital structure by reducing the Company’s total debt by approximately 51%, or $309 million, while substantially lowering interest costs, extending maturities and increasing liquidity. In connection with the recapitalization, the Company has also entered into agreements that will eliminate, reduce and/or favorably amend the payment terms associated with over $100 million in potential claims of a number of creditors including various production partners and talent guilds. The Company will operate as usual during the court process, which is anticipated to be concluded in the first quarter of 2011.

Of those voting, 99% in dollar amount and 94% in number of holders of the obligations under the first lien credit agreement and 100% in dollar amount and in number of holders under the second lien credit agreement approved the Plan. This broad support far exceeds the minimum thresholds required by the Bankruptcy Code to implement a plan of reorganization.

“We are delighted to receive the support from our lenders, which will allow us to quickly move forward with our pre-packaged restructuring plan,” said Robert Halmi, Jr, Chief Executive Officer of RHI Entertainment. “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.”

1 2 3 4 Next › Last »