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Bankrupt Redbox Parent Chicken Soup For The Soul Entertainment Gets Judge’s Preliminary OK For Plan Restoring Employee Pay And Benefits


Employees of bankrupt Redbox parent Chicken Soup for the Soul Entertainment could have their pay restored under a preliminary plan OK'd by a judge.

Delaware U.S. Bankruptcy Court Judge Thomas M. Horan on Thursday issued an order signing off on an $8 million “debtor in possession” loan following a preliminary hearing on Wednesday. CSSE, which went public in 2017 as a media-focused spinoff of its namesake publisher of self-help books, acquired streaming service Crackle and film distributors Screen Media and 1091 Pictures en route to its ill-fated takeover of video kiosk operator Redbox. HPS Investment Partners, which has been one of the company’s backers and arranged for financing for the DIP loan, raised objections to a changing of the management guard announced earlier in the week.

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