STX Shopping Film Library to Resolve $150 Million Debt, Increase Output

The parent company of indie film and TV studio STX is shopping its film library rights in order to pay off debt of roughly $150 million and infuse the company with cash, a Wednesday regulatory filing said.ErosSTX, which owns the producer of films like “Hustlers” and “Greenland,” revealed it had “entered into an exclusive negotiation period with a third party to monetize the revenue from 46 films in its library.” While the third party is unknown, the company is exclusively shopping the library revenue stream and will retain derivative and ancillary rights, allowing STX to develop remakes and sequels based on its existing IP.Run by CEO Robert Simonds, STX’s library sale would resolve $150.1 million owed to a revolving credit facility from Jp Morgan and $22 million in mezzanine credit.

The potential transaction would exceed the debt and add cash to STX’s balance sheet, sources said.In a media landscape rife with consolidation,

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