An affiliate of Prana Studios has a deal in principle to buy the bankrupt visual-effects company Rhythm & Hues, winning a turbulent, two-day auction.

Prana is a computer-animation and visual-effects company based in the United States with a wholly owned subsidiary in Mumbai, India, where much of its animation is produced. The company has worked on animation in Hoodwinked and done visual effects for the 2010 Tron Legacy.

Earlier in the day, Rhythm & Hues asked for and received an extension to allow a previously disqualified bidder to re-enter the auction.

Rhythm & Hues received final offers from Prime Focus and a Chinese company. However, an attorney for the company told a bankruptcy court judge that new information came to light that indicated that the bidder had been shut out of the auction unnecessarily.