Deluxe Entertainment Services Group, the Hollywood production services provider that had been backed by billionaire Ron Perelman, filed for a prepackaged chapter 11 bankruptcy protection on Thursday, according to the Hollywood Reporter. The company’s lenders will assume control of the firm, which also owns post-production companies EFILM, Company 3 and Encore, as well as VFX house Method. Last month, the company and a majority of its lenders had agreed to a debt for stock swap that would see the company hand control over to its lenders. When the financial restructuring is complete, it will reduce the company's long-term debt by well more than half and raise $115 million of new financing, the company said. Deluxe was founded in 1915 by William Fox, and was acquired by Perelman’s MacAndrews & Forbes holding company in 2006. As the company’s financial needs hit a tipping point, however, MacAndrews & Forbes opted to discontinue its support, releasing a statement in August stating that it “decided not to participate in the refinancing,” leading to the restructuring.
