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2 weeks ago
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EXCLUSIVE: Film Finances, global leader in film completion guarantees, and its related companies are set to be acquired by Film Services International, a new investor group with insurance company backing.
The purchase agreement under a voluntary, prepackaged Chapter 11 known as a 363 Sale, was filed in Delaware court today to sever the completion bond giant from private equity owner, Miami-based 777 Partners, whose legal and financial woes — from a failed Australian airline to a disastrous run for British football club Everton — have been making headlines this year.
Peter Coleman, CEO of FFI Holding, said the new ownership group is committed to providing a substantial amount of capital to grow the various businesses and seek other acquisitions.
“We are excited to partner with this new group, which sees the huge value and expertise that our bond professionals and various businesses spanning all phases of the production services process bring with thousands and thousands of completed films over decades of service,” Coleman said. “FFI and its portfolio deliver services with the single focus of helping our clients get their projects completed and we are very excited for the next leg of our growth.”
With a 363 filing, Film Finances can ensure stability and protect itself from any potential disruptions or lingering 777 liability.
Insurers Silac and Haymarket, part of the investor group, will provide a total of $8 million in DIP financing as part of the investor group.
PE firm 777 acquired Film Finances 2019. It was in the midst of a spending spree, which came to an end this spring with Everton on a missed deadline, legal claims, allegations of fraud and ultimately a U.K. bankruptcy order. The PE firm’s other clubs included Genoa, Hertha Berlin, Vasco da Gama, Red Star Paris, Melbourne Victory and Standard Liege.
A London-based asset manager and 777 lender, Leadenhall, sued the firm and its owners in New York for “double-pledging,” meaning that collateral underlying hundreds of million in loans had already been used as security with other lenders.
The Film Finances sales process should be completed in 60 days, pending a 75 day period for challenges, or higher offers.
Management teams at all FFI companies – which include Pivotal Post, EPS-Cineworks Digital Studios, Buff Dubbs + DAMsmart, Silver Trak Digital and LiquidLight — will remain in place with Coleman as chief executive of the group.
News of the sale comes as Film Finances, which has successfully executed thousands of film projects, celebrates 75 years in business with six offices globally and production professionals in virtually every market worldwide.
It acquired its editing and post-production rental businesses over the past decade, then Australian broadcast services, digitization and media asset management provider Silver Trak Digital and its parent company Buff Dubs. Vendor relationships across consumer media platforms such as Netflix, Apple and Google have been key to FFI’s overall growth.
The news also comes after another big completion bond firm, Media Guarantors, was sold with its parent Spotted Risk to CAC Group last month.
