Live Entertainment Misses Interest Payment on Notes
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Live Entertainment Inc., a financially troubled Van Nuys videocassette distributor and retailer, said it did not pay the $8 million in interest due May 15 on $110 million of 14.5% senior subordinated notes.
Live said it has a 30-day grace period during which it can make the interest payment before going into default. The company previously said that it hired Bear, Stearns & Co. and Jefferson Capital Group Ltd. to recommend ways to restructure the notes and to review Live’s capital structure.
The company also said its Live Home Video subsidiary has signed a domestic distribution agreement with Warner/Elektra/Atlantic Corp.
The three-year distribution pact, which becomes effective June 1, replaces Live’s current agreement with Uni Distribution Corp, which expires May 31. Live previously said it considered a new distribution agreement to be a key step in addressing its financial problems.
Terms of the agreement were not disclosed.
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