Carolco Pictures Inc. has managed to extend its credit facility with Credit Lyonnais for nearly four more months.
The $ 42 million credit line with the French bank and its syndicate gives the indie time to move ahead on its exchange offering with its bondholders.
Plans ‘event’ films
According to sources, Carolco is hard at work trying to double the amount of its credit line, which would be essential to its plan to produce several high-cost “event” films a year.
Just as important, Carolco also announced it had raised $ 27.35 million from the advanced payment of license fees from Showtime Networks Inc. for television rights to certain films.
However, a majority of the cash, which is discounted from the original amount , is spoken for. A portion was used to pay down existing debt, plus continuing payments to the guilds.
Last month, Carolco cut a deal with the three major guilds to hand over $ 30 million for past and present film and television residuals. The arrangement scheduled payments over the next three years.
The company is in the midst of a major financial overhaul that includes redeeming $ 49.9 million in two bonds in exchange for new issues, plus cash (Daily Variety, Dec. 28, 1992).