Cablevision Systems Corp. said late Tuesday that it has reached a tentative agreement with chairman Charles Dolan regarding its troubled Rainbow DBS subsidiary, basically extending the period of time Dolan has to come up with financing for the unit to March 31.
According to a press release, Cablevision said it will work cooperatively with Dolan to separate Rainbow DBS from Cablevision. In the meantime, the company said, it will allow Rainbow DBS, also known as Voom, to continue operations.
In addition, Dolan has agreed to fund any costs incurred by Rainbow DBS above those that would have been incurred in a shutdown.
The agreement basically gives Dolan more time to seek alternative funding for Voom, which some analysts have said will need $1 billion-$1.5 billion over the next few years.