Redbox parent Chicken Soup for the Soul Entertainment has shifted its bankruptcy filing from Chapter 11 to Chapter 7, meaning it will liquidate its business.
The company, sagging under the weight of nearly $1 billion in debt and a tall stack of unpaid bills, filed for bankruptcy protection on June 29.
During bankruptcy court proceedings, it secured a “debtor in possession” loan of $8 million designed to help it resume paying workers after nearly a month of no paychecks and also restore their medical benefits.
Deadline had earlier reported on the delays in pay and health care. On Wednesday, HPS Investment Partners, which has been one of the company’s backers and arranged for financing for the DIP loan, said it could not extend any additional financial resources.
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