Article from Variety...
The visual effects industry woke up Monday morning to news it had been dreading: One of the biz's most admired companies, Rhythm & Hues, had been forced into bankruptcy. In a single week, R&H's big release for 2012, "Life of Pi," had won four Visual Effects Society Awards, including the org's equivalent of best picture and won the BAFTA for visual effects, while the company was set to file for Chapter 11 reorganization in Los Angeles.
Prime Focus, the India-based visual effects and 3D conversion company, had hoped to buy Rhythm & Hues, and negotiations were under way through last week. However, Prime Focus was unable to assemble the necessary financing, and its proposed deal to acquire R&H fell through. On Sunday, even as the BAFTAs were being handed out in London, R&H began calling its employees and clients to inform them of the move.
Unconfirmed reports of the Chapter 11 filing appeared on the VFX Soldier blog around 10 p.m. Sunday night, and Variety was able to confirm them about 90 minutes later. Company has branches in Vancouver, Taiwan, Malaysia and two in India. The bankruptcy filing will be made in Los Angeles.