SOURCE MEDIA SAYS INTEREST NOT PAID ON SR. SECURED NOTES
2001-05-31 16:37 (New York)
(The following is a reformatted version of a press release issued by Source
Media and received via fax. The release was confirmed by the sender.)
SOURCE MEDIA INTEREST NOT PAID
Company Examining Strategic Alternatives
DALLAS, May 31,2001 - Source Media, Inc. (OTC Bulletin Board: SRCM), a
leading provider of interactive digital cable TV applications mid audio and text
applications for all digital media platforms, announced today that it has not
made the approximately $5.3 million interest payment on its 12% Senior Secured
Notes due May 1, 2001 within the 30-day grace period provided by the indenture
governing the Notes, and that an Event of Default has therefore occurred with
respect to the Notes. As a result, the holders of at least 25% of the aggregate
principal amount of Notes outstanding may declare the entire unpaid principal
amount of the Notes and all accrued interest due and payable immediately. The
Company has engaged UBS Warburg as its exclusive financial advisor in analyzing
its strategic alternatives and will continue to review all available options.
Source Media is a leader in the development, production and distribution of
new media content. Source Media's interactive TV business is conducted through
SourceSuite LLC, a 50/50 joint venture with Insight Communications, which is
managed by Source Media. SourceSuite's products are SourceGuide, an interactive
program guide and LocalSource, a local interactive programming service. Source
Media's IT Network is the leading creator of private label audio and text
content, This content is designed for universal distribution and access across
all platforms, including voice portals, wireless and wireline telephone,
Internet and digital cable television, For further information, please visit our
website at www.sourcemedia.com.
CONTACT:
Benjamin J. Douek, Chief Financial Officer
972-701-5401
972-701-5566 - Facsimile
bjdouelc@srcm.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: Statements that are not historical facts, including statements about
co~fidence and strategies and plans and expectations about new and existing
products, services, technologies and opportunities, industry growth, demand, and
acceptance of new and existing products, and returns on investments in products
and markets are forward-looking statements that involve risks and uncertainties
that could significantly impact the companies. These statements are not
guarantees of future performance, and actual results could differ materiallyfrom
current expectations. |
