STX Puts Rights to ‘The Contractor’ in Chapter 11 Bankruptcy Amid Studio Sale – The Hollywood Reporter

Film studio STX Entertainment has put an oblique subsidiary firm holding the rights to the Chris Pine and Ben Foster-starring thriller The Contractor into bankruptcy chapter.

The transfer, detailed in an SEC submitting from Eros Global Corp., mum or dad of STX, goals to guard the worth of the motion thriller for the corporate’s shareholders as Eros strikes forward on a deal to promote the indie studio constructed and led by Robert Simonds to an affiliate of the Najafi Companies. Unveiled on Tuesday, the SEC submitting signifies that a Dec. 6, 2021 settlement for the sale of STX was amended on March 15.

The Najafi Companies will now purchase 85 % of the fairness pursuits and 100% of the voting pursuits of STX, whereas Eros STX Global Corp. agrees to retain 15 % of the non-voting shares within the indie studio. “We anticipate the purchase price and the amount of outstanding debt at closing to be approximately $157 million,” Eros stated within the SEC submitting.

The deal for STX Entertainment requires the indie studio to repay $148 million in debt, and follows STX Entertainment and Eros finishing a stock-for-stock merger to type Eros STX Global Corp. in 2020. The Najafi Companies is a personal funding firm with holdings in client, media, talent-driven manufacturers, e-commerce, tech and sports activities.

Najafi has partnered with The Forest Road Company as its lender to repay STX Entertainment’s excellent debt load and supply working capital going ahead.

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