As reported by Deadline Hollywood, Hollywood's leading independent audio post production company, Todd-Soundelux is filing for bankruptcy and closing its facilities in Santa Monica and Hollywood.
A company statement says that the decision was made "to streamline the company's cost structure while preparing the company for sale", while placing blame on "a significant decline in revenues, primarily in the feature film segment, which has impacted the independent post production sound business in the Los Angeles area".
Todd-Soundelux, which was formed through the merger of Todd-AO and Soundelux, says it plans to stay open and fully operational during restructuring however 30 of the sound studio's 200 employees have already been made redundant.
The company's recent projects include Lone Survivor, Game of Thrones, Mad Men, CSI, CSI: NY, Person of Interest, and Family Guy, among others.
Further reporting by the Wall Street Journal states that the company is now seeking immediate access to the cash it needs to keep its new reorganisation afloat, and that it has said it's struck a deal with lender PNC Bank to use the cash collateral securing the bank's claims.
It’s asking the Los Angeles bankruptcy court to approve the deal with PNC, which last year extended Todd-Soundelux a $5 million revolving loan.
In court papers filed Thursday, Todd-Soundelux Chairman David F. Alfonso stated: “The debtor must have the immediate use of any cash collateral to meet payroll obligations, to meet the daily costs and expenses of operating the business, to promptly pay vendors, and to acquire goods and services to keep their business operating. Any delay in the debtor’s ability to meet one or more of the aforementioned operating needs could deprive the debtor of its ability to successfully reorganise its financial affairs."