Creditors HPS and Oaktree Capital have taken control of MBS Group, a major supplier of lighting rigs and production equipment used by studios including Netflix and Warner Bros Discovery. The restructuring wiped out up to $900 million of debt, which lenders converted into roughly $100 million of new equity. An additional $40 million injection is planned to stabilise the business and fund growth.

MBS services over 600 sound stages globally, including New York’s Silvercup Studios and Los Angeles’ Television City, but struggled under its debt load as entertainment groups cut production budgets following the streaming downturn in 2022. Spending on scripted television has fallen nearly 20% from its 2022 peak, according to Prod Pro. Former owners Hackman Capital Partners and Affinius Capital exited the deal after acquiring MBS from Carlyle in 2019 for $650 million.

The company was advised during restructuring by Alix Partners. A spokesperson for MBS said the company had achieved commercial growth and was gaining market share.