Prana affiliate prevails in R&H auction
UPDATED MAR 29: 34x118 Holdings, a wholly owned subsidiary of Los Angeles-based VFX and animation house Prana Studios, has emerged victorious in its bid for beleaguered Rhythm & Hues.
Allan Soong will serve as chief restructuring officer of the new operating company and will work with Lee Berger as president, Erika Burton and co-president and Gautham Krishnamurthy as chief technology officer.
It is understood the auction process saw rival bids from Prime Focus of India, as well as Psyop and a group connected to China Lion.
Judge Neil Bason approved the acquisition during a hearing on Friday morning at US Bankruptcy Court in Los Angeles.
South Korea’s JS Communications had been in the running earlier in March but pulled out when it missed a deadline pursuant to its stalking horse status and subsequently demanded a break-up fee.
Liked several of its US peers, Rhythm & Hues struggled from competition by international effects houses and low profit margins.
The company filed for bankruptcy and remained operational following of a $16m loan from Universal and Fox that allowed staff to continue working on two 2013 releases from either studio – R.I.P.D. and Percy Jackson: Sea Of Monsters.
Rhythm & Hues was the studio behind the Oscar-winning effects on Life Of Pi.