Live Entertainment will clear a major hurdle next week when it secures a new $50 million credit facility from its bankers, Pioneer and a new lending group.
The struggling video distributor will have access to the cash once it has redeemed $ 110 million in bonds and convertible debt in exchange for new bonds worth $ 100 million.
The swap is expected to be completed next Thursday.
The company has been going to a financial restructuring since last summer.
If the bond exchange is successful, Live’s prime lenders, led by Chemical Bank, will extend its current $ 30 million credit facility from Jan. 29 to July 29, 1994. In addition, Pioneer will provide $ 15 million in credit until the same date, but be subordinated to the bank group.
Live’s investment bankers, Jefferson Capital Group and Daniels & Associates, are rounding up $ 5 million more.
Separately, the company announced that Tony Scotti was officially named chairman of the board. Scotti had been in that position since November.