UPDATE 1-RHI files for bankruptcy protection

NEW YORK, Dec 10 (BestGrowthStock) – RHI Entertainment
Inc , maker of made-for-television movies,
mini-series, and other television programming, on Friday filed
for bankruptcy in order to implement a plan of reorganization.

The company, whose programs have appeared on the Hallmark
Channel, Liftime, Spike TV, broadcast channels and others,
reported assets of $524.7 million and debts of $834.1 million
in its bankruptcy petition, filed with the U.S. Bankruptcy
Court in Manhattan. It has about 60 employees, according to
the filing.

The New York-based company filed a prepackaged bankruptcy,
which is a plan of reorganization voted on before filing for
bankruptcy. It allows a filer to emerge from bankruptcy
relatively quickly. RHI said it expects to exit bankruptcy in
the first quarter 2011.

The restructuring plan will make its creditors its new
owners. It will reduce the company’s total debt by about 51
percent, or $309 million, lower interest costs, extend
maturities and increase liquidity.

The company also agreed to eliminate, reduce and amend the
payment terms associated with over $100 million in potential
claims of a number of creditors including various production
partners and talent unions.

Of those voting, 99 percent by dollar amount of the
holders of the scenario claims and 100 percent of the second
lien approve the plan, the company said in a statement.

RHI has secured a commitment for a $15 million
debtor-in-possession revolving credit Facility from JPMorgan
Chase Bank, which will provide financing to complete the
confirmation of its Plan and pay its clients, employees and

In addition, the New York-based company expects to have a
$25 million revolving credit facility when it emerges from
Chapter 11.

UPDATE 1-RHI files for bankruptcy protection