Unapix seeks Chapter 11 protection.
NEW YORK Troubled Gotham distrib Unapix Entertainment has filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
Subject to court approval, Unapix says in its Nov. 26 filing that its primary lender, General Electric, will provide post-petition financing with a revolving credit facility of up to $40 million, enabling the company to continue operating.
Unapix also says it will retain West Coast investment banking firm Salem Partners to look at strategic alternatives, including new financing and a sale of the company. The past year has seen several mergers among smaller distribs, most recently Lions Gate's purchase of Trimark.
Unapix canceled its Dec. 11 shareholders meeting.
Trading in Unapix's common stock was halted by the American Stock Exchange until the company filed its latest quarterly earnings report and pending review by the exchange to see if the company is in compliance with its listing guidelines. Those usually require a minimum market capitalization, which Unapix is hard pressed to meet with its shares trading at a paltry 16 [cts.].
A recent revamp of sales management in Europe was one of many Unapix restructuring efforts over the years that never managed to buck up the stock or put the company on the map. In September, it announced its latest strategic refocusing and cost cutting, noting that its film division, which distributed "Grass," would focus on horror, thriller, action-adventure and urban genres.
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|Title Annotation:||Company Financial Information|
|Comment:||Unapix seeks Chapter 11 protection.(Company Financial Information)|
|Article Type:||Brief Article|
|Date:||Dec 4, 2000|
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