Live Entertainment to Emerge From Bankruptcy

Live Entertainment Inc. said it would emerge from Chapter 11 bankruptcy proceedings today under a prepackaged reorganization plan approved last week by a Los Angeles federal Bankruptcy Court judge.

Live, a Van Nuys videocassette distributor and retailer, filed the bankruptcy petition on Feb. 2.

Live Chairman Anthony J. Scotti and David A. Mount, the company’s president and chief executive, said in a joint statement that the reorganization plan “marks the last step in a financial restructuring process begun almost a year ago. We have reduced our public debt by $70 million and lowered our annual public dividend and interest costs by over $11 million.”

The plan calls for Live to exchange existing bonds and preferred stock for a combination of $8 million in cash, $40 million in new notes and $60 million in new preferred stock.

Before the restructuring, Live was 49.9% owned by troubled Los Angeles movie production company, Carolco Pictures Inc., which has yet to complete its own reorganization. But upon the completion of Live’s restructuring, Live said Carolco would own about 35% of the voting equity of Live; and Pioneer Electric Corp.--the Japanese concern that is leading the reorganization of Live and Carolco--would hold 30% of the voting equity in Live.