MCEG Restructures Loan: Management Company Entertainment Group...

MCEG Restructures Loan: Management Company Entertainment Group reached a tentative agreement to restructure a $72.5-million bridge loan with Kidder, Peabody & Co. Under the plan, MCEG’s loan would be replaced with two series of notes. The first, totaling $55 million, would mature in 1992 with a mandatory payment of $13.7 million on April 30, 1991. The second, for $17.5 million, would mature in 1995 and could be increased to $23 million. The multiyear agreement is designed to give MCEG a long-term capital base. In return, MCEG will issue Kidder warrants or convertible securities to purchase 12 million shares of its common stock at $3 a share, with options on additional shares.