11 February 2013 9:52 AM, PST | The Hollywood Reporter | See recent The Hollywood Reporter news »

Rhythm & Hues—the lead VFX house on Life of Pi -- won the BAFTA award for visual effects on Sunday, but the good news was dampened quickly by spreading word that employees had been contacted and told not to come into the El Segundo studio on Monday. The company has been having cash flow problems and is now taking aggressive action. Beyond laying off some of its 1400 employees, Rhythm & Hues will also be seeking protection against some of its creditors. "Tonight we are going to be filing for Chapter 11 bankruptcy," says Lee Berger, president of the company's

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- Carolyn Giardina , Eriq Gardner

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