South Korean media company JS Communications Co., has recently signed a letter of intent to buy financially-troubled VFX studio Rhythm & Hues, which is responsible for the recent award-winning CG/live-action opus Life of Pi. In the letter of intent, JS Communications is asking the bankruptcy court handling Rhythm & Hues’ case for the stalking horse status.
For those unfamiliar to the process, stalking horse bidders serve to spur other potential buyers into staking out more competitive positions in a court mandated auction process. The stalking-horse bid will represent the lowest acceptable offer. Other bidders will be required to submit qualified bids by Tuesday.
Earlier this week, Rhythm & Hues said in court filings that they need to be sold by mid-March or risk running out of money. It asked a bankruptcy court judge to approve speeding up its auction process. If the stalking-horse bid is unsuccessful, JS Communications will receive a breakup fee of no more than $150,000, according to court filings.