Fries Entertainment Seeks Bankruptcy Shield : Television: The major independent supplier of made-for-TV movies has been hit by rising bank debt and defaults.

Fries Entertainment, a major supplier of TV movies and one of the last publicly traded independent TV production companies in Hollywood, filed for bankruptcy reorganization Wednesday after years of mounting financial losses.

Fries had missed a bond payment earlier this month, leading to acceleration of $29.5 million in bank debt and other possible defaults. The company, in an effort to reduce overhead, had cut some executive salaries, closed various divisions and laid off dozens of employees in the preceding several months.

Charles W. (Chuck) Fries, chief executive of Fries Entertainment, said the company filed for Chapter 11 bankruptcy protection so it could continue operating while it reorganized and looked for a partner or possible buyer. He said his film library has “significant value” and that distribution rights could be acquired by another company.

Fries has been the most prolific producer of TV movies in Hollywood.

Known for making low-budget TV movies and so-called docu-dramas--such as “The Case of the Hillside Strangler” and “The Queen of Mean,” which starred Suzanne Pleshette as New York hotel mogul Leona Helmsley--Fries claims more than 100 pictures to his credit over the last 20 years.

In 1984, he took the company public, raising $9 million. The object was to use the proceeds to expand into the movie business and develop TV programs for the networks and syndication--all areas that could be extremely lucrative but that also poised high risks.

The company, however, was never able to successfully branch out beyond its core business of made-for-TV movies. It sold one show to ABC--”Supercarrier,” an expensive one-hour drama series about life aboard an aircraft carrier--but the program was canceled after six weeks and proved to be a costly flop.

Fries also stumbled badly when it tried to break into the movie business. The firm’s two most notable films, “Cat People” in 1982 and “Troop Beverly Hills” in 1989, were not box-office hits. After mounting losses, Fries shut down its movie division last year.

The company has maintained that it has been severely hurt by the downturn in the syndication market and the financial troubles of many independent TV stations, which had been its principal customers.

Analysts, however, have been critical of the company for poor management decisions, including its attempt to build a full-service independent TV and movie studio in an era of increasing competition and rising costs.

Furthermore, analysts criticized the firm for paying its namesake a high salary and providing him such perks as a company-paid car and driver, all as Fries Entertainment continued to lose money.

The company has posted losses in four out of the last five fiscal years.

Last month, the firm disclosed that its chief executive would defer 50% of his $825,000 base compensation. Also, his son--Charles M. (Butch) Fries, a producer and corporate secretary--had his salary cut by one-third to about $190,000 and relinquished his severence agreement.

“The primary problem was that in the mid-1980s, money was too readily available,” said Barbara Sloan, a portfolio manager at Wilkinson & Hottinger, a New York money management firm. “Then all of a sudden that was shut off, and companies such as Fries had a hard time paying interest on their huge debts.”

For the fiscal year ended May 31, Fries lost $11.9 million on revenue of $31.3 million. Losses had widened from $5.6 million the year before; revenue skidded 29% from $43.9 million.

Fries earlier this month missed a $932,000 bond payment and bank payment, triggering a “cross-default” and the acceleration of bank debt totaling $29.5 million owed to Credit Lyonnais. That meant that Fries owed the full amount by Oct. 31.

A default on the agreement with Credit Lyonnais would also trigger a default of a financing agreement with British-based Spectrum Entertainment Group. Fries entered into a $15-million revolving financing agreement with Spectrum in August, 1990, for the production of theatrical films.