JS Communications Co., a South Korean entertainment and media company, has signed a letter of intent to acquire the assets of El Segundo-based Rhythm & Hues, the visual effects house that recently filed for bankruptcy protection from creditors.
JS Communications, a diversified entertainment and media company, on Thursday agreed to enter into negotiations to buy Rhythm & Hues, according to a document filed in U.S. Bankruptcy Court in Los Angeles.
Rhythm & Hues retained investment banking firm Houlihan Lokey Capital Inc. to solicit bids for Rhythm & Hues, which recently won an Oscar for its work on the Ang Lee movie "Life of Pi," and is one of Hollywood's premiere visual effects companies.
JS is a so-called stalking horse bidder, one that is intended to encourage competitive bidding in an auction process overseen by the Bankruptcy Court. The company has received 20 bids from prospective buyers but JS is the only one that has been identified, according to the court records.