R&H hoping for fast exit from bankruptcy

February 10, 2013Article

Bob Baradaran, R&H’s outside general counsel and a partner at Greenberg Glusker, told Variety: “Going forward, (R&H is) going to proceed with the projects we currently have in the pipeline, completing them on time and at high quality. While that is proceeding, we will be actively negotiating with potential third parties who have shown an interest in investing in or acquiring the company to assure its long-term viability.”

Numerous R&H artists were laid off, but for those remaining, Baradaran said, “I don’t expect employee compensation, either timing or amount, to be modified materially. The status quo will remain.”

R&H’s financial downward financial spiral began in 2011 when Universal cancelled part of a contract on “Snow White and the Huntsman” after staffing and R&D were under way. Company sought an equity investor but a deal fell through when the Digital Domain bankruptcy frightened off the potential partner. By January, Warner, Fox and Universal had to step in to keep work moving. Fox and U wanted R&H to declare bankruptcy, but Warners insisted it would pull its work if that happened. The trio settled on a financial mechanism one insider described as “neither a loan nor an investment.”

To view full article, click here