Lorimar Suffers $21.7-Million Loss; Debtors Problems Cited
Lorimar Telepictures reported a net loss of $21.7 million on revenue of $202.8 million for the quarter ended Dec. 31, 1986. In the same quarter a year ago, the company reported net income of $2.96 million on revenue of $173.78 million.
The loss was attributed to the widely reported woes of certain independent TV broadcasters that are too strapped to pay for off-network, or syndicated, programming. Lorimar announced last month that it would take a $37-million charge against earnings in order to increase its bad debt reserves and downwardly revise its income forecast for certain programs.
The Culver City-based entertainment company also disclosed that it “discontinued all discussions” with Tel-Am Corp. to acquire WTTV in Indianapolis because “mutually acceptable terms were not reached.”
As reported, Lorimar announced an agreement last July to acquire WTTV for $85 million from an ownership group that included certain employees and associates of Drexel Burnham Lambert, an investment banking firm. At the time, Drexel had been retained by Lorimar to finance a $1.8-billion acquisition of seven TV stations from Kohlberg Kravis Roberts & Co.
That ambitious plan was abandoned three months ago. On Tuesday, however, Lorimar said it has filed a registration statement with the Securities and Exchange Commission for a debt offering of $100 million, to be underwritten by Drexel for general corporate purposes and to pay down bank debt and commercial paper.
