Live Entertainment Gives Restructuring Details
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Live Entertainment Inc., an ailing Van Nuys-based video distributor, released more details of a financial restructuring proposed by Live and certain of its securities holders.
The plan, aimed at reducing Live’s debt burden, includes an exchange offer whereby holders of $131 million of Live debt and preferred stock would receive new securities.
The debt portion is $110 million of 14.5% “junk bonds” on which Live defaulted in June.
The plan also calls for a unit of Pioneer Electronics Corp. of Japan to invest $15 million in Live that would later convert to a significant equity stake in Live, although the stake’s exact size has not been determined.
Pioneer and French and Italian investors already own a combined 47% stake in Carolco Pictures Inc., a Los Angeles film production company that in turn owns 49.9% of Live. Live said it hopes to complete its restructuring by year’s end.
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