Go Back   Eurocardsharing > General Discussions > General Satellite News > Latest Satellite News

Latest Satellite News Discussion, Crown Nears Hallmark Recapitalization at General Satellite News forum; Crown Nears Hallmark Recapitalization Hallmark Cards To Gain 90.1% Control Mike Farrell -- 3/1/2010 5:50:49 PM Crown Media, the parent ...

LinkBack Thread Tools Display Modes
Crown Nears Hallmark Recapitalization
Bacteria's Avatar
Posts: 96,016

Level: 124 [♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥]
Life: 4638 / 4638
Magic: 32005 / 90611
Experience: 68%

Thanks: 1,107
Thanked 5,577 Times in 1,419 Posts
Join Date: Oct 2006
Age: 35
Crown Nears Hallmark Recapitalization - 02-March-2010, 04:10

Crown Nears Hallmark Recapitalization
Hallmark Cards To Gain 90.1% Control
Mike Farrell -- 3/1/2010 5:50:49 PM

Crown Media, the parent of the Hallmark Channel, has approved a proposed recapitalization by its largest debt and equity holder, Hallmark Cards, bringing the greeting card giant another step closer to gaining 90.1% of its outstanding shares, according to documents filed with the Securities and Exchange Commission Monday.
Hallmark Cards has been trying to push through a recapitalization of Crown, which owes the card maker $1.1 billion, since May. Hallmark's initial proposal -- which would have swapped the $1.1 billion in debt for a $500 million loan and $550 million in equity -- came under fire from some shareholders who claimed the deal would dilute their holdings into oblivion.

And it sparked one shareholder - S. Muoio & Associates - to file suit last year to block the deal.
But since then, Hallmark has amended its proposal to include less onerous terms. On Feb. 9, Hallmark proposed a deal that would recapitalize the company in two transactions - a $315 million loan, and $185 million in convertible preferred stock. The balance of Crown's debt ($600 million) would then be converted into Class A common stock which would revert to Hallmark Cards. As a result of the deal, Hallmark would end up with 90.1% of Crown's outstanding shares.
"We believe the consummation of the recapitalization will be a very positive development for the company and with the significant reduction in our outstanding debt, will help us maintain the operating health of our company," Crown CEO Bill Abbott said in a statement.

If the deal were completed, Crown would have about $315 million in debt.
Muoio, who agreed to put his lawsuit on hold while Crown and Hallmark worked on the recapitalization plan, declined to comment.

However, both Hallmark and Crown have agreed to allow Muoio seven weeks, beginning on March 1, to review the new proposal before closing on the deal. After that time, Muoio can decide whether to restart his lawsuit, seek an injunction on the deal or drop his litigation and allow the deal to go through.

Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Forum Jump

ECS on RSS ECS on Twitter ECS on Facebook ECS on Youtube
Follow us on:

Powered by vBulletin
Copyright 2002 - 2010, Jelsoft Enterprises Ltd.
SEO by vBSEO ©2011, Crawlability, Inc.