Livent Secures Financing, Will Cut 470 Jobs

Livent Inc. said it secured $23 million in financing from investment firm Angelo, Gordon & Co., giving the troubled theater firm funds to continue operating as it restructures under its bankruptcy court filing.

Livent will fire about 470 employees, or 42% of its staff, as part of a plan to cut expenses by 40%. Livent also said it trimmed its board, will close the money-losing North American tour of its “Show Boat” musical and won’t release third-quarter results until the middle of this month.

Ronald Burkle, Martin Goldfarb, Heather Munroe-Blum and Jerry Speyer resigned from the board, reducing it to 13 members. Musician Quincy Jones and H. Garfield Emerson resigned last week.

The moves come about two weeks after Livent, reeling from an accounting scandal blamed on co-founders Garth Drabinsky and Myron Gottlieb, filed for Chapter 11 bankruptcy protection and restated more than two years of financial results. Livent earlier raised $5 million of financing to stay afloat.