Film studio STX Entertainment has created an indirect subsidiary that owns the rights to the thriller starring Chris Pine and Ben Foster. The contractor in Chapter 11 bankruptcy.
The move, detailed in an SEC filing from Eros Global Corp., STX’s parent company, is intended to protect the value of the action thriller for the company’s shareholders as Eros moves forward on a deal to sell the independent studio built and run by Robert Simonds at a subsidiary of Najafi Companies. Unveiled on Tuesday, the SEC filing indicates that a Dec. 6, 2021 agreement to sell STX was amended on March 15.
The Najafi companies will now acquire 85% of the stakes and 100% of the voting rights of STX, while Eros STX Global Corp. agrees to retain 15% of the independent studio’s non-voting shares. “We expect the purchase price and amount of debt outstanding at closing to be approximately $157 million,” Eros said in the SEC filing.
The deal for STX Entertainment sees the independent studio repay $148 million in debt, and follows STX Entertainment and Eros completing a stock merger to form Eros STX Global Corp. in 2020. The Najafi Companies is a private investment firm with holdings in consumer goods, media, talent-driven brands, e-commerce, technology and sports.
Najafi partnered with The Forest Road Company as a lender to repay STX Entertainment’s outstanding debt and provide working capital going forward.