Entertainment Rights has officially posted a loss of US$169 million for the last eight months, causing its stock to drop by 34% in response. The company is planning to embark on a debt reduction program under the leadership of new chief financial office Edward Knighton.
More specifically, ER has revealed an intention to renegotiate its North American DVD distribution deal with Genius Products, as well as to extend its US broadcast agreements beyond 2010. These moves could affect ER’s cash-flow to the tune of more than US$20 million. And obviously, the company will be working closely with its bank over the next four to six weeks in an effort to stave off bankruptcy.