RHI Cleared to Emerge from Chapter 11

NEW YORK: RHI Entertainment has received approval to emerge from Chapter 11 with a reorganization plan that reduces its debt and obligations by more than $400 million.

"This is a great day for RHI Entertainment,” said Robert Halmi, Jr, CEO. “With the bankruptcy court’s approval, we are cleared to emerge from Chapter 11 with a strengthened balance sheet and the financial flexibility that will enable us to continue to deliver high quality, one-of-a-kind entertainment content. As we move forward after emergence, we will further execute on the many operational and financial improvements we initiated during the reorganization process and believe we are well positioned for success in the years to come."

RHI will emerge from Chapter 11 with a debt that has fallen by 49 percent ($298 million); substantially lowered interest costs, extended debt maturities and increased overall liquidity; and agreements with production partners and talent guilds that eliminated, reduced and/or favorably amended payment terms associated with over $100 million in obligations.

The company has also clinched a number of deals, including one to produce two new TV movies, Bog Monster and Scarecrow, for Syfy. RHI has licensed seven new two-hour TV movies to Crown Media (Hallmark Channels), including two based on stories by Rosamunde Pilcher. A $20-million deal with Power Corp will see the production of three new mini-series, including Alistair MacLean’s Air Force One Is Down, Alistair MacLean’s Dark Crusader and Blackout. RHI and Power have also concluded two output agreements: the first is for four years and includes 40 new two-hour TV movies and 16 new four-hour TV mini-series. The second consists of a substantial number of library titles. In both agreements, Power has rights to Central and Eastern Europe and Latin America while RHI retains all other worldwide rights.

Other deals include M6 scoring Neverland, Seven Deadly Sins and a number of new two-hour TV movies and library mini-series; France TV acquiring Treasure Island and Moby Dick, plus library mini-series; and Tele Munchen taking the Germany-exclusive rights to Neverland and Treasure Island. An additional agreement for a major mini-series co-production between TMG and RHI is expected to be announced shortly.

“RHI is producing, distributing and acquiring a tremendous amount of content for the global marketplace,” said Halmi Jr. “We continue to be in discussions with networks and broadcasters about new projects throughout the world and you will be hearing much more from us very shortly.”