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LIONS GATE’S LENDERS WON’T FORCE DEFAULT

June 22, 2010 by · Leave a Comment 

Lions Gate Entertainment’s lenders have agreed to amend the terms of the studio’s $340-million credit facility, thereby forestalling potential bankruptcy. Under the original terms, a default on the loan would have been triggered if any single shareholder obtained 20 percent of the studio’s shares. Carl Icahn, who has been waging a bitter takeover battle against Lionsgate, has been piling up shares in the company, raising his stake in recent weeks to 31.8 percent. Under the new terms of the loan, he would have to raise his stake to 50 percent before a default could be triggered.