Sumner Redstone’s National Amusements has completed its previously announced agreement to restructure its debt.
The terms are the same as those Redstone agreed to with his lenders in late February, giving him until the end of 2010 to pay back his debt, with certain repayments due in late 2009 and 2010.
But if he defaults on the current agreement, he could lose both CBS and Viacom. National Amusements pledged “substantially all of its assets,” including controlling stakes in CBS and Viacom, to secure the debt.
“It is the company’s understanding that a default under the definitive agreements by National Amusements could cause a foreclosure with respect to the shares of CBS Corporation common stock subject to the pledge, which could result in a future change of control of the Company,” the CBS filing read. The Viacom filing had the same statement, just with “Viacom” in place of CBS Corporation.
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