One more week for Force issue

By Phil Boeyen, ShareChat Business News Editor

Friday 8th February 2002

Shareholders in cinema operator Force Corp (NZSE: FOR) have been given a further week to decide if they want to take up a rights issue following changes to the company's financial exposure in Argentina.

Force announced late Thursday that it has written off the balance of its 25% investment in Village Cinemas SA in Argentina, valued at $12.15 million, and reduced its guarantee of a US$45 million loan to US$4 million from US$15 million.

The company is also contributing US$4.25 million in equity to pay down Village Cinema's debt balance to US$45 million.

At the same time as those announcements the cinema operator released its interim results showing a net loss of $5.15 million but an operating surplus of $1.7 million - an 82% improvement on the previous interim result.

The stronger operating result was driven by a 33% lift in cinema revenues to $15.6 million, on the back of film hits such as Shrek, Moulin Rouge, Harry Potter and Bridget Jones' Diary.

The Market Surveillance Panel says it has consented to an extension of a further week for the issue of up to $31 million of Mandatory Convertible Notes in Force, which will now close on Friday, February 15.

The panel says the primary reason for granting its consent is to ensure that all subscribers and prospective subscribers are given sufficient time to analyse Force's latest announcements.

However in agreeing to a further extension Force must write to all shareholders informing them of the latest announcements and must also allow existing subscribers to withdraw their applications if they wish, up until the new closing date.

Force Corp shares closed up 20% at 4.8 cents on Friday following Thursday's positive news.

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