Execs negotiating for credit extensions
While reiterating that its cash levels are dangerously low, Los Angeles movie company Kushner-Locke posted a narrowed fiscal first-quarter loss of $1.8 million on Wednesday.The red ink for the three-month period ended Dec. 31 compares with a loss of $5.5 million in the same period of the previous fiscal year. Quarterly revenue plummeted 87% to $2.4 million, due to decreased film and TV production. “Management does not expect that existing resources and cash expected to be generated from operating activities will be sufficient to fund (continuing operations) and mandatory interest and debt repayments in the next 12 months,” Kushner-Locke warned. Execs are continuing to negotiate credit extensions with lender Chase Manhattan Bank, and company reps are pursuing possible library-output deals and other transactions to generate capital, Kushner-Locke said. Kushner-Locke shares closed unchanged Wednesday at 22¢.
Follow @Variety on Twitter for breaking news, reviews and more