Chicken Soup for the Soul Entertainment, Inc.

Chicken Soup for the Soul Entertainment’s June 28, 2024 Chapter 11 filing shifted to liquidation when the court entered the conversion order Dkt. 120 on July 10, 2024. The case’s path is Chapter 7 administration and liquidation; no specific next milestone is identified in the filings reviewed.

Chicken Soup for the Soul Entertainment’s Chapter 11 case, filed on June 28, 2024, was converted to Chapter 7 on July 10, 2024, placing the case on a liquidation path under the conversion order Dkt. 120.

The company operated streaming services including Redbox and Crackle, physical media rental kiosks, and content production and distribution businesses. Its first-day declaration Dkt. 7 attributed the liquidity crisis in part to the prepetition secured agent’s failure to approve a proposed $40 million working-capital loan, which management said impaired content acquisition and creditor relationships. The declaration also traced the secured debt burden to the 2022 Redbox acquisition. Identified funded debt was at least $500,000,000 across one of five instruments; HPS had asserted $500,876,623.42 in outstanding principal under the prepetition secured facility as of April 29, 2024.

The debtors initially sought to preserve value through a recapitalization or potential sales. On July 4, the court entered an interim financing order Dkt. 85 authorizing postpetition financing and use of cash collateral, with draws before a final order limited to $8 million subject to the budget and facility terms. The subsequent conversion established Chapter 7 liquidation as the operative path; no specific next milestone is identified in the filings reviewed.