Thursday, March 07, 2013

On the Block

From Variety:

... [T]he “stalking horse” bid for bankrupt Rhythm & Hues Studios is due tomorrow. That bid will set the floor for the selling price.

Per bankruptcy court filings, further bids would have to be at least $250,000 above the stalking horse bid. Should another buyer outbid the stalking horse at auction, the stalking horse bidder will get a “break-up fee” of 1.5% of the selling price, capped at $150,000. To reach that cap, the sale price would have to be at least $10 million. That seems likely. ...

Judging from court documents, after its journey through bankruptcy, R & H will be doing lots more of its work in Canada (where state subsidies are higher than Canadian pines) and Asia with its rock-bottom wages.

Not pretty.
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