Family Room restructures $4.1 million of debt into preferred stock

By Devika Patel

Knoxville, Tenn., Dec. 16 - Family Room Entertainment Corp. said its investors have agreed to restructure approximately $4.1 million of the company's convertible debt and related interest as convertible series A preferred stock.

The preferreds will be convertible into Family Room common shares at a fixed rate of $0.0175 per common share, which is a premium of approximately 500%.

"We believe this is a significant step forward for Family Room Entertainment Corp.," chief executive officer George Furla said in a press release. "By cleaning up Family Room's balance sheet, we believe that we can enable future growth for the company through the development of new strategic partners and acquisitions."

Based in Beverly Hills, Calif., Family Room is a motion picture production and development company.

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