JS Communications Co., a South Korean media company, has signed a letter of intent to buy financially-troubled VFX studio Rhythm & Hues, asking the bankruptcy court to handling the company’s case to give it stalking horse status, according to reports.
Stalking horse bidders serve to spur other potential buyers to stake out more competitive positions in a court mandated auction process. The stalking-horse bid represents the lowest acceptable offer; other suitors will be required to submit qualified bids by Tuesday.
In court filings this week, Rhythm & Hues said it needs to be sold by mid-March or it will run 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.