Chapter 11 Filing for RHI

NEW YORK: RHI Entertainment has filed a prepackaged Chapter 11 reorganization plan in a New York court, reducing its debt by $309 million.

The recapitalization will also lower interest costs, extend maturities and increase liquidity, the company said. RHI has also entered into agreements that will eliminate, reduce and/or favorably amend the payment terms associated with more than $100 million in potential claims of a number of creditors, including production companies and talent guilds. Normal business operations will continue during the reorganization process, set to be completed in Q1 2011.

Robert Halmi, Jr, CEO of RHI Entertainment, commented, “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.”

The company has secured a commitment for a $15 million debtor-in-possession revolving credit facility from JPMorgan Chase Bank, and anticipates having a $25 million revolving credit facility upon emergence from Chapter 11.