South Korean entertainment and media company JS Communications has withdrawn its bid to acquire Rhythm & Hues, the El Segundo visual effects company that recently filed for bankruptcy protection.
Rhythm & Hues, which won an Academy Award for its work on the Ang Lee movie "Life of Pi," said in a statement that JS Communications, the previously designated stalking horse bidder, was unable to proceed with the proposed acquisition.
The statement did not specify the reason for the decision, but a source close to the matter said JS cited a "lack of cooperation from the studios."
A handful of other unidentified bidders remain interested in buying Rhythm & Hues and intend to submit bids by the March 22 deadline with a competitive auction occurring on March 27, the company said.
If accepted, the successful buyer will submit its bid for approval by the Bankruptcy Court on March 29, effectively ending Rhythm & Hues' bankruptcy proceeding.
Rhythm & Hues filed for bankruptcy protection under Chapter 11 of the federal bankruptcy code last month after laying off 250 employees.