BlackRock Inc.'s HPS and Brookfield Corp.'s Oaktree Capital Management have taken control of MBS Group, a company that provides lighting, rigging, and other services for Hollywood productions. This takeover involved wiping out as much as $900 million of debt owed by MBS Group. The move comes as the global entertainment industry faces economic challenges.
The firms converted the substantial debt into approximately $100 million of equity in MBS Group. Additionally, they have committed to investing an extra $40 million into the company. MBS Group provides production services to over 600 entertainment locations worldwide, indicating its significant role in the industry.
This deal highlights the ongoing financial pressures within the entertainment sector, affecting not just studios but also the suppliers of film and television production. It also demonstrates a trend where private credit lenders are increasingly becoming owners of businesses when leveraged deals encounter difficulties.
