Archive notice: This article was originally published on 24 June 2020. It has been translated into English and lightly edited for clarity while preserving its historical context. This article describes Technicolor’s financial position and restructuring announcements in June 2020, not its current corporate status.
Technicolor, then the owner or operator of studios including The Mill, Mikros Image, Mr. X and MPC, filed for Chapter 15 recognition in the United States while pursuing a financial restructuring in France.
Chapter 15 filing
Chapter 15 provides a mechanism for recognising and supporting foreign insolvency proceedings in the United States, including protection of relevant US assets while the main restructuring proceeds elsewhere. Technicolor cited pressure associated with the COVID-19 pandemic and declining DVD sales as factors in its revenue deterioration.
Restructuring plan
The company announced an agreement in principle for a restructuring framework and targeted €420 million in new financing to cover liquidity needs. It presented the plan as a route toward longer-term sustainability for its businesses, employees, customers and suppliers while allowing existing shareholders to participate in a recovery.
The effect on individual animation and VFX studios was not yet clear at publication. // Not independently verified at press time.
Financial and vendor-risk assessments should use current filings and corporate disclosures before making production commitments.
