French media services company Thomson SA (TMS) has reportedly filed for bankruptcy protection in the U.S. The company sought the protection under Chapter 15 in a New York bankruptcy court to protect its U.S. assets from creditors. Thomson, which was trying for reorganization, has about $3.8 billion in debt.
The company is a supplier of set-top boxes and video-production services. It generates close to half of its revenues from the U.S. through its unit Thomson Inc.
When its effort to reach an agreement with lenders on restructuring failed, Thomson filed the equivalent of Chapter 11 in France last month.
The U.S. court has ordered a provisional stay, which will safeguard the U.S. assets. A recognition hearing on the Chapter 15 petition is scheduled for January 14.
If Thomson's new restructuring plan is approved, the company expects to exit the process by February, 2010.
TMS closed Thursday's regular trade at $1.22, down $0.07 or 5.43%, on 274,218 shares.
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