Sumner Redstone’s holding company National Amusements has finally reached a deal with his lenders to repay the $1.6 billion worth of debt that prompted speculation this fall that Redstone would be forced to sell Viacom or CBS.
The deal allows Redstone to choose which assets he wants to sell to repay the debt. National Amusements will also use tax refunds and the money it makes from continued operations to meet its obligations, The Wall Street Journal reports. The company also extended the maturity of its debt to 2010 and is expected to make its first debt repayment, of $100 million, once the deal closes next month.
As expected, National Amusements is looking into selling a bunch of its 1,500 movie theatres. The company has put out feelers and is expected to start a formal process soon.