Chatbot startup Character.AI filed for bankruptcy earlier this week, and a legal filing spotted by Bloomberg reveals that Disney has agreed to hire the majority of its workforce.

Under the agreement, Disney will make employment offers to at least 60 Character.

AI employees — described as the majority of the workforce — with an estimated total annual compensation of about $60 million.

The filing also states that the “vast majority” of employees who received offers have accepted them. This follows Disney‘s earlier agreement to acquire some of Character.

AI’s assets for $20 million, and the recent appointment of Character.AI‘s former CEO Karandeep Anand as Disney‘s first CTO.

The deal is structured as a stalking horse bid, meaning another company could still come forward with a higher offer. The filing explains that despite its “large and engaged user base,” Character.

AI has been hampered by high costs and “potential litigation-related liabilities and regulatory engagement.

” The company faces a lawsuit from the mother of a 14-year-old boy who died by suicide after becoming obsessed with one of its chatbots, and it is also under government investigation over child safety concerns.