Technicolor announced it has requested that its senior creditors amend the company’s financial covenants to allow for greater flexibility in pursuing potential joint ventures, disposals and acquisitions.
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Unedited press release follows:
Technicolor requested amendments to its debt documentation in order to increase strategic flexibility
Paris (France) – October 5, 2011 – As a global technology player in the rapidly changing Media & Entertainment markets, Technicolor (“the Company”) (Euronext Paris: TCH) intends to participate in the industry’s accelerating consolidation trends. It believes it is the right time to take advantage of potential strategic opportunities and optimise its portfolio of activities to strengthen its business profile.
Technicolor’s debt documentation, however, restricts its strategic flexibility to execute on any material industry consolidation opportunities. The Company has therefore requested that its senior creditors agree to a limited number of technical modifications to its credit documents, mainly related to joint ventures, disposals and acquisitions, in order to increase this flexibility.
The proposed changes require majority approval from its creditors. The Company expects the process to complete by the end of October.
Under the Company’s consent solicitation, all financial covenants and the main terms and conditions of the debt will remain unchanged as the Company is operating well within its existing covenants.
Technicolor is home to industry-leading creative and technology professionals committed to the creation, management and delivery of entertainment content to consumers around the world. Propelled by a culture of innovation and underpinned by a dedicated research organization, the company’s thriving licensing business possesses an extensive intellectual property portfolio focused on imaging and sound technologies. Serving motion picture, television, and other media clients, the company is a leading provider of high-end visual effects, animation, and postproduction services. In support of network service providers and broadcasters globally, Technicolor ranks among the worlds’ leading suppliers of digital content delivery services and home access devices, including set-top boxes and gateways. The company also remains a large physical media service provider, being one of the world’s largest film processors and independent manufacturers and distributors of DVDs and Blu-ray™ discs. Euronext Paris: TCH www.technicolor.com