Eros STX mulls restructuring options, including for unit’s credit facilities

By Wendy Van Sickle

Columbus, Ohio, Aug. 3 – Eros STX Global Corp. is considering restructuring options, and its STX Financing LLC subsidiary is working with its lenders on a waiver and extension of this deadline to deliver audited financial statements or paying off the debt, according to a news release.

The subsidiary had $150.1 million outstanding under its asset-back credit facility with JPMorgan that is due to mature on Oct. 7, 2021 and $22.7 million outstanding under its mezzanine facility that matures on July 7, 2022.

The parent company is also considering options under its £50 million of 6½% U.K. retail bond due Oct. 15, 2021 and the requirements to deliver audited financial statements by July 31.

The company filed a form 12b-25 stating that it is unable to file its annual report on form 20-F for the fiscal year ended March 31 by the Aug. 2 due date, without unreasonable effort or expense, primarily because its audit committee is conducting a formal internal review of some accounting practices and internal controls related to its Eros subsidiaries.

“Significant revenue from these subsidiaries may not have been appropriately recognized during the fiscal year ended March 31, 2020. Further, a significant portion of the receivables associated with such revenue was valued at zero for the six months ended Sept. 30, 2020, as part of the company’s preliminary purchase price allocation for the merger transaction [between Eros International plc with STX Filmworks, Inc.],” the release states.

Eros STX Global is a global entertainment company that acquires, co-produces and distributes films, digital content and music across multiple formats. It has headquarters in Douglas, Isle of Man, and Burbank, Calif.

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