Lamb & Lion Records Ends Chapter 11
Lamb & Lion Records, a Christian record company in Burbank owned by entertainer Pat Boone, has emerged from reorganization under Chapter 11 of the U.S. Bankruptcy Code after an agreement was reached with its largest creditor, according to court papers.
The label filed for Chapter 11 protection in September, 1988, in the wake of a dispute with Bell Savings & Loan, which was owed nearly $200,000 at the time. The company emerged from Chapter 11 last month.
For the record:
12:00 a.m. Dec. 16, 1989 For the Record
Los Angeles Times Saturday December 16, 1989 Home Edition Business Part D Page 2 Column 1 Financial Desk 4 inches; 120 words Type of Material: Correction
Lamb & Lion Records--A story Friday about the emergence from Chapter 11 bankruptcy by Lamb & Lion Records, a Christian record company in Burbank owned by entertainer Pat Boone, was mistakenly cut and as a result omitted important details of the terms of the agreement with its creditors.
Under the terms of the agreement, Lamb & Lion has made a $30,000 payment on the loan and will make additional monthly payments of $2,500 for nearly two years. The balance of the loan is to be paid after that period, according to court papers, and Boone is personally guaranteeing the loan.
As a result of the agreement, a lawsuit filed in late 1987 in San Mateo County Superior Court by Bell Savings & Loan that accused Boone of fraud has now been dropped. Boone has denied the allegation, contending that he had been a good customer in making payments to Bell and was treated unfairly.
Bell, an insolvent thrift based in San Mateo, was later sold to a group of investors led by former Treasury Secretary William Simon with about $565 million in government assistance. Bell has since been merged by the Simon group into Western Federal Savings & Loan in Marina del Rey.
Under the terms of the agreement, Lamb & Lion has made a $30,000 payment on the loan.
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