Loss-ridden NHI Nelson Holdings International has announced it will dispose of a majority of its equity interest in Nelson Vending Technology Ltd., a subsid , to a privately held Ontario corporation.
The company owns about 69% of the issued and outstanding shares of NVT, and the sale should generate much-needed cash flow over the next few years.
NHI sold off its Nelson Entertainment movie subsid to New Line in November 1991 and has few assets left, including some merchandising rights to “Bill & Ted’s Excellent Adventure,” and a contingent receivable of $ 4.5 million from Polygram.
Terms of the sale include a debt restructuring that will result in NHI ultimately owning a 79.5% stake in NVT. More than $ 15 million of NVT debt owed to NHI will be restructured so that certain debt is converted into additional shares of NVT.