Cinedigm has been thrown a financial life line by its largest creditor

http://celluloidjunkie.com/2009/05/11/daily-cinema-roundup-monday-11-may-i-have-been-in-this-business-since-1972-and-i-have-never-seen-such-a-bad-time/

 

Digital Cinema integrator Cinedigm (formerly AccessIT) has been thrown a financial life line by its largest creditor GE Commercial Finance. From the press release, “The amendment significantly relaxes the financial covenant ratios that C/AIX is required to meet every quarter through the maturity of the loan in 2013. In addition, the new arrangement allows C/AIX to pay approximately $5 million in cash to its parent company, Cinedigm, as well as increase its ability to pay annual fees to Cinedigm. Reflecting the current market conditions, the amendment increases the interest rate on the credit facility from 4.5% to 6% above LIBOR and sets a LIBOR floor of 2.5%. C/AIX will pay a 0.5% amendment fee on the outstanding balance of $183.9 million.” The deal is a vote of confidence and saves Cinedigm and Christie/AIX, but staying afloat and surviving is not the same as expanding and thriving;