NEW YORK — Cinergi Pictures Entertainment Inc.’s net loss ballooned to $9.8 million in the third quarter, from $294,000 a year earlier, as a result of costs related to the winding down of the indie.
Cinergi, which stopped making movies earlier this year and has agreed to sell most of its assets before distributing the outstanding cash to its shareholders, said its overhead costs jumped from $2.1 million to $6.2 million in the quarter.
The increase was partly due to severance payments to employees and payments made by Cinergi “to terminate certain sales agency relationships,” as well as expenses incurred in relation to negotiating asset sales and the cash payout, it said.
Cash of $2.41 a share will be distributed to shareholders via a takeover offer for the outstanding stock from Cinergi chairman Andrew Vajna, who already owns about half the stock.
The indie said Wednesday it doesn’t expect the deal will be completed until at least mid-December. Cinergi stock closed Wednesday up 3¢ to $2.25.