TV production company All American Communications Inc. announced that it is in the process of making arrangements to close its credit facility with Credit Lyonnais Bank Nederland N.V.
In a press release Thursday, the company said it expects to conclude a $ 25 million working capital and production loan facility with Chemical Bank and a syndicate of other commercial lenders later this month.
Credit Lyonnais is apparently calling in its outstanding loans to All American, according to a spokesman for All American, in what he dubbed “not an unusual move.” The refinancing should help the company move about $ 11 million in debt off its balance sheet, he said.
All American said it intends to pay the state-owned French bank the balance due, about $ 3 million outstanding, from the initial borrowings under the proposed facility being managed by Chemical Bank.
The company expects to obtain funding under the facility, which has been approved by the banks but remains subject to the closing of definitive loan documentation.
In addition, All American said motion picture project loans, totaling about $ 10.9 million, from Credit Lyonnais to certain company subsidiaries have also matured. The project loans are obligations of the subsidiaries holding the related motion picture assets and are also secured by a pledge of about 190,000 common shares of Live Entertainment Inc.
All American said it plans to transfer the collateral securing such facilities to the lender or, upon the lender’s request, to continue to exploit the film assets under an extended loan maturity date.
The lender has demanded repayment under both the revolving line of credit and film facilities. The assets include “Eddie and the Cruisers II,””Eye of the Tiger,””Lady Beware” and “Resurrected.”
All American is still trying to close its deal to buy LBS Communications, which is in Chapter 11, an acquisition it announced in 1991.