Hemdale Communications Inc. has entered into an agreement in principle with international TV distribbery Newberger Entertainment Group for a newly created HCI subsidiary to snap up most Newberger assets, Hemdale announced Monday.
Subject to due diligence and banking terms expected to close next week at the latest, HCI will get close to 200 hours of NEG programming in exchange for assuming the distrib’s unspecified bank debt and various outstanding trade payables.
Upon completion of the deal, NEG topper Art Newberger and his staff will join HCI, with Newberger assuming the title of prexy.
Company toppers explained that the acquisition was being made to create yet another outlet for upcoming Hemdale product like the fantasy-cel feature “The Princess and the Goblin.”
HCI posted 1992 revenues of $ 10.8 million with a $ 52,000 net loss. The year before, its revenues were $ 9.6 million with a $ 354,000 net loss.
NEG, which last year claimed revenues in excess of $ 2 million, recently had its library evaluated at $ 6.5 million.