Ailing Qintex to Sell Assets to 2 Buyers for $65 Million

Qintex Entertainment Inc., a television production and distribution firm, will sell its operating assets for more than $65 million in two transactions, it was announced today.

Beverly Hills-based Qintex Entertainment said in a statement that its board of directors had agreed to sell its entertainment assets to RHI Entertainment for $42.4 million.

RHI Entertainment will receive the Qintex library, accounts receivable, development projects and other assets under the deal.

Qintex also agreed to sell certain assets of its HR Broadcasting division to ARBY Communications. The deal will make $40 million in cash available for distribution to HR Broadcasting’s creditors and shareholders, the statement said.

Qintex said it expects to receive at least $23 million from the distribution.

HR Broadcasting will sell its primary operating assets, which consist of television stations WTTO in Birmingham, Ala., and WCGV in Milwaukee, Wis. The broadcasting company will retire its bank debt and make distributions to its creditors and shareholders.

Investment banker Donaldson, Lufkin & Jenrette helped broker the deal, Qintex said.

Qintex Entertainment filed for protection under Chapter 11 of the Bankruptcy Code last October. Both agreements are subject to approval by the U.S. Bankruptcy Court and various other regulatory approvals.

Qintex Australia Limited, which last year made an unsuccessful attempt to take over MGM-UA Communications, owns a 43% stake in Qintex Entertainment.