National Amusements in restructuring talks
Sumner Redstone’s National Amusements is still grappling with the debt payments that forced the sale of CBS and Viacom shares last week.
After conflicting info about the nature of the loan and the payment spurred for National Amusements earlier this month by the sharp drop in Viacom and CBS stock prices, National Amusements issued a statement Friday confirming that it is “in constructive discussions” with its lenders.
It’s believed that additional payments on the loan will come due by year’s end. The drop in the value of CBS and Viacom shares has put parent company National Amusements in the thorny situation of potentially violating its debt covenants at a time when the credit markets have seized up.
Underscoring the urgency, National Amusements statement noted that the debt restructuring talks are being overseen by prexy Shari Redstone and board members George Abrams and David Andelman.