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Eros STX unit FSO Jones asks for Chapter 11 case to be dismissed
Chicago, April 28 – Eros STX Global Corp. subsidiary FSO Jones, LLC has asked the court to dismiss its Chapter 11 bankruptcy, according to filings with the U.S. Bankruptcy Court for the Eastern District of Louisiana.
The company filed bankruptcy on Feb. 28 and listed $10 million to $50 million in assets and $100 million to $500 million in liabilities.
Its largest unsecured creditor is Greenland Film 2 SCS, though the amount of its commercial contract claim was not disclosed.
FSO Jones owns the distribution rights to a forthcoming sequel to the movie “Greenland.”
The Chapter 11 filing was made to give the company “critical ‘breathing space’” while parent Eros STX pursued the sale of the filing entity.
On April 22, Eros closed a sale of the debtors’ non-debtor indirect parent, thereby averting the need for Chapter 11 relief.
In connection with the dismissal, the debtors seek to assume and assign their only assets, the distribution agreements for two motion picture productions (Greenland and the sequel).
STX Financing will make a $2.5 million payment to Greenland that came due during the case, $5.5 million will be paid for certain box office and participation payments to key parties and $9.2 million will be paid to 30West.
The financing is being worked out with Comerica Bank.
Timing on the 30West payment is being worked out, but all other terms have been agreed upon.
In connection with the assumption and assignment of the distribution agreements, the debtors are seeking a structured dismissal.
A hearing has been scheduled to consider the matter on May 12.
Objections must be filed by 10 a.m. ET on May 11.
Kirkland & Ellis LLP and Kirkland & Ellis International LLP are serving as general bankruptcy counsel, with Heller, Draper & Horn, LLC serving as local bankruptcy counsel.
Eros STX is an entertainment company based in Burbank, Calif., and Mumbai. The Chapter 11 case number of FSO Jones is 22-10196.
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