Post-production house Point.360 will receive up to $3 million in financing to help it through its bankruptcy.
The Los Angeles company amended a loan agreement with Austin Financial Services Inc., in Los Angeles, to receive the debtor in possession financing to be used to fund general working capital needs and fees, expenses and costs connected with the company’s Chapter 11 filing.
In October, Point.360 filed for bankruptcy reorganization to reduce costs and optimize operations. The company has facilities in Burbank for mastering, distribution, closed captioning and foreign language subtitling services.
Chief Executive Haig S. Bagerdjian said the money is a major step in restructuring the company’s finances.
“My personal guaranty of borrowings under the company’s Austin agreement illustrates my confidence in our ability to successfully complete the reorganization,” Bagerdjian said in a prepared statement.
Shares in Point.360 (PTSXQ) closed up 28 cents, or more than 1,700 percent, to 30 cents on the over-the-counter market.