Things continue to not look so hot for RHI Entertainment (RHIE). Last week they entered into a forbearance agreement (details here). I also saw that Seth Klarman sold his stake in the company, which is a big eye opener for me as he was one of the reasons I bought the stock.
The big question now will be the value of their library. It is quite sizeable and has been their reason for staying afloat. Can it keep them afloat long enough for the market for their products to improve? With the amount that the stock has declined, it is something I'm willing to wait out and see. They are still in a good position in their industry. Their biggest problem is the large amount of debt, and if they can manage it well enought to stay afloat. I have such a small position that it really isn't affecting me much. It was a one of those "if it works, I'll get a decent but not great return; if it doesn't I'm not out much" trades.
Disclosure: Long RHIE