Live Entertainment to File for Bankruptcy Protection

Live Entertainment Inc. said its board has approved a plan for the company to file a so-called prepackaged bankruptcy reorganization plan this week. The plan is part of the company’s effort to restructure its burdensome debt.

Live, a Van Nuys-based distributor of home videos and entertainment software, said its debt would be reduced by about $70 million once the restructuring is complete.

The main purpose of the Chapter 11 bankruptcy filing is to have the court give final approval to the restructuring of Live’s 14.5% notes and its Series A cumulative preferred stock, a restructuring that most of the securities’ holders have already endorsed, Live said.

Live termed the bankruptcy filing “a mere formality” and said it would not affect the operations of its subsidiaries. The company expects to emerge from Chapter 11 “within the next month or so,” Live said.