ST Huayi announced that its wholly-owned subsidiary Huayi Brothers Film Co., Ltd. has received a decision from the Jinhua Intermediate People's Court. The court has decided to initiate pre-reorganization for Huayi Film, and to coordinate the pre-reorganization with the company. At the same time, it has been determined that the company's interim administrator will serve as the interim administrator for Huayi Film. There is significant uncertainty as to whether Huayi Film will subsequently enter formal reorganization proceedings.
Huayi Brothers Media CorpSubsidiary enters pre-reorganization, signaling financial distress and potential formal reorganization.
