As expected, Carolco Pictures has used a chunk of the proceeds from the sale of its TV syndication rights to Spelling Entertainment to pay off its bank debts.

According to documents filed with the Securities & Exchange Commission Tuesday, the debt-ridden indie used $ 26.5 million of the $ 64 million it received from Spelling to pay off prinicpal and interest on debt owed to a consortium of U.S. banks, led by Bankers Trust Co. and Chemical Bank.

Still unpaid is the $ 64 million-plus owed to foreign banks, primarily Credit Lyonnais’ Rotterdam subsidiary.

Just before the close of the sale, Carolco sources noted the proceeds would be used to pay off bank debt (Daily Variety, Aug. 28).

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