PVI Expected To File for Bankruptcy
May 29, 2003
Princeton Video Image, a provider of real-time virtual advertising and interactive services, is expected to file for Chapter 11 bankruptcy protection in the next several days. PVI says it is negotiating with a newly formed entity owned by Presencia en Medios, SA de CV and Cablevision Systems Corp. to purchase all of the assets of PVI and to provide debtor-in-possession financing for around 90 days.
Presencia and Cablevision are secured creditors of PVI and hold around 45 percent of its common stock. The asset sale would be subject to bankruptcy court approval and a bidding procedure in accordance with bankruptcy law. The filing and agreement are subject to forming definitive agreements approved by PVI's board of directors.
If the asset sale goes through, PVI would be liquidated according to a plan subject to bankruptcy court approval. If liquidated, recovery of PVI for shareholders is "highly unlikely." PVI says it does not expect disrupted services to its customers during the debtor-in-possession financing.