Background

MJ Hudson advised the joint liquidators in a complex restructuring and insolvency process involving certain companies within an international TV production and distribution group with businesses based in the UK and US and a portfolio spanning numerous content production companies. In mid-March 2020 most TV productions were suspended as the COVID 19 pandemic forced the US and UK into lockdown. Live sport and other filming became impossible and the loss of revenue coupled with the cost of re-starting productions was significant.  Due to the financial impact of the COVID-19 crisis, the directors of the company identified a serious concern that there would be insufficient cash headroom in the business based on its available facilities and therefore an urgent need to ensure that the group’s trading subsidiaries had sufficient access to capital.

Our approach

The support of the group’s lenders was fundamental to the future of the business so as part of a broader group restructuring which enabled the trading companies to secure operational funding and create a management equity participation structure, MJ Hudson was retained to advise the joint liquidators on a creditors' voluntary liquidation of the parent company to allow the group reorganisation to take place and new money from the existing lender group to be injected. This was a varied and intricate case which is still ongoing. It is an excellent example of our cross-departmental capabilities - use of both our insolvency practice for liquidation matters and our deep corporate expertise in relation to the sale of assets.