Sumner Redstone Gets Stay of Execution

By
Sherry Johnston
Sherry Johnston Photo: Getty Images

Creditors for Sumner Redstone's National Amusements have agreed to indefinitely delay today's deadline of an $800 million debt repayment. Redstone has vowed to restructure the company and sell off some assets, so the fifteen companies in the debt syndicate are giving him a chance in the hopes of avoiding a bankruptcy situation and a loss for all parties. Meanwhile, his plan to sell off Midway Games and his theater chain was approved by the board of National Amusements. This was against the wishes of his daughter, Shari Redstone, who is in charge of the cinema wing of the company. The two are so irate with one another that they only communicate by fax these days.

Reports say that a new deal with creditors might be more onerous than the current one, but Redstone's board seems to be amenable to making drastic sales to save the company in general. The takeaway from all this? That yes, people still use fax machines.

A MOGUL DODGES A BULLET [NYP]
Redstones Move Closer to a Deal With Creditors [WSJ]