MBS Group seized by creditors following debt default

Creditors HPS Investment Partners and Oaktree Capital Management have taken control of MBS Group following a debt default by the production equipment supplier. The takeover occurred after the lenders converted hundreds of millions of dollars in debt into equity, ending the ownership of Hackman Capital Partners and Affinius Capital.

The restructuring includes an additional $40 million in funding from creditors to support operations and facilitate growth. MBS Group provides essential lighting and production infrastructure to over 600 sound stages globally, servicing major studios including Netflix and Warner Bros. Discovery.

The financial distress at MBS Group reflects broader economic pressures within the entertainment industry. As the streaming boom unwinds, major production companies have reduced spending, leading to tighter budgets and a slowdown in film and television production that has impacted various support businesses.