Chunghwa Telecom pact with Rhythm & Hues remains

Taiwanese telco to continue technical cooperation

BEIJING

Taiwan’s Chunghwa Telecom is continuing its partnership with troubled vfx company Rhythm & Hues, despite the studio filing for Chapter 11 protection last week.

“I don’t think there will be any significant changes in our relationship in the near term,” Chung Fu-kuei, Chunghwa Telecom’s data communication business group prexy, told the China News Agency.

On Friday, a U.S. bankruptcy judge greenlit a plan for Universal and 20th Century Fox to provide up to $17.1 million in loan financing to allow Rhythm & Hues to continue operating.

In 2011, Rhythm & Hues pacted for three ventures in Taiwan: a film investment fund, a vfx facility and a cloud computing center for the vfx and animation industries.

Rhythm & Hues’ branch in Kaohsiung, which worked on Ang Lee’s “Life of Pi,” is still leasing computing equipment from Chunghwa Telecom to generate its special effects, and the two companies are also working together on cloud-based applications, Chung said.

However, the future of the longterm cooperation between the companies will depend on how the U.S. studio adjusts its strategy, Chung said.

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