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Pro Elite SEC statement on relations with Showtime, possible new financial backers
By Zach Arnold | November 20, 2008
On November 13, 2008, the Company received correspondence from CBS Corporation, on behalf of Showtime Networks, Inc. (Showtime), that the sale of assets of ProElite, Inc. and its subsidiaries originally scheduled for November 17, 2008 has been adjourned for no less than two weeks from that date. The correspondence also confirmed that Showtime will provide the Company with notice of intention to schedule a sale of assets.
While the Company believes that Showtime had no right to schedule the asset sale, the Company is continuing discussions with potential strategic investors to secure financing sufficient to cure any possible default under the Showtime loan agreements. However, there is no assurance as to whether any such financing will be available or available on reasonable terms.
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A bigger issue than if they find a way to pay off the debt they have accrued and in essence pay off the Showtime Loan Agreements is whether or not this is going to end up irreparably damaging their relationship so that they have no Showtime or CBS TV deal. As we saw with WCW, no TV equals dead product, regardless of whether or not it carries debt.