Pay-Per-View Company Files For Chapter 11 Protection For Second Time
DALLAS (AP) _ Hotel pay-per-view company SpectraVision Inc. took its second trip into Chapter 11 bankruptcy protection, from which it emerged about 2 1/2 years ago.
The company filed for reorganization in federal bankruptcy court in Delaware. It said the voluntary filing would let the company obtain additional financing and help it implement an operational turnaround while trying to restructure its finances.
In its filing, the company listed assets of $512.1 million and liabilities of $521.7 million. The company claimed it had bond debt in excess of $300 million.
``We intend to utilize the court’s protection to pursue a long-term financial restructuring″ that lowers bond debt and ``enhances our prospects for future growth,″ chief executive officer Gary Weik said in a statement.
The turnaround plan includes the restructure of SpectraVision’s customer service organization and the ongoing rollout of its new Starpath video-on-demand technology.
SpectraVision filed a prepackaged bankruptcy plan in September 1992, emerging from Chapter 11 protection two months later, said company spokesman spokesman Robert Mead.
The company said it would ask for immediate court approval to gain access to financing to pay for normal operations throughout the bankruptcy proceedings. This filing is not prepackaged, meaning the company had not worked out its financial details with creditors and thus will not be able to emerge as swiftly from court review as it did the first time.
However, the company said it can pay vendors everything they are owed, but needed to restructure the bond debt. The largest listed creditor is Cede & Co., which holds $293.4 million in notes.
Based in the Dallas suburb of Richardson, SpectraVision supplies in-room, pay-per-view entertainment and information services to hotels in the United States, Canada, Mexico, Australia, the Caribbean and the Pacific Rim.
The company said its Canadian and Hong Kong operating companies and some American subsidiaries would be unaffected by the filing.
Court papers say at least 20 percent of the company is owned by billionaire oilman Marvin Davis.
Filing for protection along with SpectraVision were subsidiaries SPI Newco, Spectradyne Inc., Spectradyne International Inc. and Kalevision Systems Inc.-U.S.A. SpectraVision is the parent of Spectradyne Inc., which the company called the ``leading provider of in-room video entertainment systems to hotels.″