Eros STX unit’s FSO Jones’ Chapter 11 bankruptcy case dismissed

By Sarah Lizee

Olympia, Wash., May 19 – Eros STX Global Corp. subsidiary FSO Jones, LLC had its Chapter 11 bankruptcy case dismissed on May 13, according to court documents filed with the U.S. Bankruptcy Court for the Eastern District of Louisiana.

As previously reported, 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.

The dismissal motion drew an objection from Region 5 U.S. trustee David W. Asbach, who said the debtor could have easily proposed a plan of reorganization to accomplish the same goals of the dismissal motion, or liquidate the limited estates through the Chapter 7 process.

However, in its dismissal order, the court said that staying in Chapter 11 would cause the debtor to incur losses and diminish in value. Likewise, conversion wouldn’t be likely to result in any additional benefit to the debtors’ estates or creditors than what they’ll realize from the dismissal, the court added.

Migration Productions I LA, LLC’s case was also dismissed. As reported, Migration had filed a separate Chapter 11 case that was later consolidated with FSO Jones’ case.

Eros STX is an entertainment company based in Burbank, Calif., and Mumbai. The Chapter 11 case number of FSO Jones is 22-10196. FSO Jones filed bankruptcy on Feb. 28.

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