Multinational media company Technicolor has filed for Chapter 15 in US bankruptcy court, citing COVID-19’s effect on revenue, as well as a global shift to streaming, which hurt its DVD business.

“The COVID-19 pandemic has caused theatrical releases to be put on hold and production timelines to be pushed back, significantly depressing Technicolor’s revenue from production services,” the company said in its filing to the US bankruptcy court in the Southern District of Texas on June 22.

Chapter 15 is a bankruptcy protection filing that allows companies that operate in multiple countries to work through the court system.

This filing will allow Technicolor to protect its US assets while it restructures its business in France. The company also laid out plans to reorganize its finances in France. Its goal is to obtain around US$470 million in new financing while reducing debt. Under this new plan, Technicolor is seeking to reduce its gross debt to around US$1.2 billion, down from US$1.6 billion, by the end of 2021.

Technicolor has built up a large presence in the kids entertainment space through subsidiary Technicolor Animation Productions, which produces and manages shows such as The Deep, Monchhichi, and Alvinnn!!! and The Chipmunks. The impact of COVID-19 on its business also led it to merge its VFX studios Mill Film (Harry Potter and the Philosopher’s Stone) and Mr. X (Marvel’s Inhumans) in May.