Redstone To Restructure With Bankers Reaching A Deal

In a released news, published by CNN, the parent company National Amusement says "it has reached an agreement in principle for the restructuring of its existing indebtedness. The agreement was reached with representatives of National Amusements' lenders and is subject to the execution of definitive agreements.

"The agreement would extend the maturity of National Amusements' existing debt, which would total approximately $1.46 billion after a repayment at closing, to December 31, 2010, with certain repayments due in late 2009 and in 2010. The restructured debt would be secured by substantially all of National Amusements' assets. National Amusements would be permitted to satisfy the indebtedness with cash flow from its operations and through tax refunds and the sale of assets as determined by National Amusements."

Substantially all of its assets will secure the debt, said the National Amusement. However, "it will be up to National Amusements to decide which properties to sell, one of the conditions that Redstone, 85, pressed for because he desperately wants to hold onto his Viacom Inc. and CBS Corp. stock. Redstone had already agreed to sell off some of National Amusement's 118 movie theaters. The prospectus is expected to be sent to potential buyers in the coming weeks," writes LA Times.