By Erik Gruenwedel | Posted: 02 Mar 2009
The recent restructured distribution agreement between Genius Products and The Weinstein Co. resulted in the creation of more than $63 million of new debt obligations, according to a regulatory filing.
Santa Monica, Calif.-based Genius, which was 60% acquired in January by GNPR Investments LLC, a privately-held affiliate of Quadrant Management, issued TWC a $20 million promissory note payable Jan. 1, 2011, excluding 5% annual interest, or $2 million.
In addition Genius agreed to pay TWC $43.3 million from the Jan. 1, 2009, closing date through February 2010, as part of Quadrant’s purchase of TWC’s 122 million shares of Genius stock. It will also be liable for any monies owed TWC from October through December 2008.
Genius shares closed March 2 at 7/10 of a cent.
TWC retained a 15% stake in the packaged-media distributor, which remains its exclusive Blu-ray, DVD distributor through 2011.
The company also disclosed the resignation of Christine Martinez, EVP of corporate strategy, effective Feb. 1. Martinez was given six months severance, including healthcare.
Martinez earned a base salary of $250,000 in 2006.
As previously reported Genius extended three-year employment contracts to CEO Trevor Drinkwater, president Mathew Smith and Mitch Budin, EVP and general manager.