DMX Gets $10M Liberty Infusion
By Mike Farrell -- Multichannel News, 4/7/2003 5:00:00 AM
Liberty Media Corp. invested an additional $10 million into DMX Music -- a move that should keep the digital-music-service provider's lenders at bay.
In a press release, DMX said the capital infusion was made to support its seven months of record performance, and the money will be used to further build its infrastructure and for working and growth capital.
DMX has about 10 million subscribers and provides digital music programming to cable and satellite operators and businesses.
Liberty owns a 56 percent interest in Maxide Acquisition Inc., doing business as DMX Music. In its 10-K annual report issued March 25, Liberty said Maxide was not in compliance with three covenants in its bank-loan agreement and was in discussions with its lenders "regarding the resolution of these defaults."
The outstanding balance of Maxide's bank facility was $94 million as of Dec. 31, according to the 10-K.
"DMX has received revised loan terms,"' a DMX spokeswoman said.
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