The head of the South Korean based firm has shown interest in purchasing Rhythm and Hues. He intends to keep the studio running. David Shim, the managing partner of J.S Communication said that he has no intention to liquidate.
Last week on Friday, David Shim got approval from court for a “Stalking Horse” bid for the bankrupt visual effect firm. He thinks that “ Rhythm & Hues should be taken care of keeping In mind its skillset and what it can offer to industry in future. According to Shim Rhythm & Hues lacked financial management. He has been on site regularly at Rhythm & Hues office and JSC appears to be potential buyer in their upcoming bankruptcy auction. It is a tragedy that a studio of this good quality, wins an Oscar and then file for bankruptcy. Something is seriously wrong if you are this good and you file for bankruptcy. J.S Communication is a diversified multi tiered media and entertainment firm based in South Korea that deliberately keeps a low profile.
J.S Communications was founded by David Shim and Jae Hwan Lee. Shim was a founder, managing director & CEO of CJ Entertainment, one of the biggest entertainment company. He was also an EMI executive for Warner Music Korea. Hwan Lee is grandson of the founder of Samsung Group.
The major VfX firm who had filed for chapter 11 bankruptcy was Digital Domain who received $15 million stalking horse bid from an American investment firm that did not win the auction. Galloping Horse and Reliance Mediaworks acquired the firm for $30.2 million. Reliance also acquired Lowry Digital and renamed it as Reliance Mediaworks. Prime Focus India acquired Frantic Films and Post Logic of Hollywood to form Prime Focus NA.
According to Court filings, it is indicated that more of Rhythm & Hues work will be done at Asian facilities. R&H has studios in India , Malaysia and Taiwan. JSC will submit the “Asset Purchase Agreement” for its bid by March 19, while other bids must be submitted by March 22. The auction for R&H will be held the morning of March 27, followed by a court hearing the next afternoon to confirm the results of the auction. If all goes as planned, the sale would be concluded by March 29.
The court also issued an order preventing shutoff of utilities during the bankruptcy and authorized R&H to pay “in its discretion” back wages due from before the bankruptcy filing.
