Carolco Pictures Inc. said it didn’t make its interest payment due yesterday on its 10% convertible subordinated debentures due 2006.
The company said it has $ 49.6 million principal amount of the debentures outstanding.
Under terms of the debentures, the company has a 30-day grace period for payment of interest before default occurs.
Carolco said it is continuing its efforts with Jefferson Capital Group and Daniels & Associates to locate sources of additional capital.
Carolco also noted that because it doesn’t have sufficient “surplus” or “net profits” as defined under Delaware law, the company is not permitted to pay dividends on its four outstanding classes of preferred stock.