INFOGRAMES REACHES A NEW AGREEMENT WITH BANKS
Date: April 24, 2006  


INFOGRAMES REACHES A NEW AGREEMENT WITH BANKS

Lyon, France, April 24, 2006 –Infogrames Entertainment today announced that it had concluded a new agreement, as part of its debt refinancing plan and the search of new operating resources. The principal features of the new agreement include:

-    the extension to March 31, 2008 of € 25.5 million in medium-term bank loans;
-    short-term operating credit facilities of € 20 million for one year;
-    the possible offering of local credit facilities in Europe, backed by trade receivables, for up to € 30 million.

The new agreement replaces a previous one, which deferred the maturities of medium-term bank loans to June 15, 2006.

Infogrames Entertainment notes that, in a separate agreement with the holders of its 2006-2008 notes, the company has obtained a repayment extension to June 15, 2006 for the first installment of € 13.4 million on those notes.

In a related announcement, Infogrames Entertainment reports that it continues to seek additional refinancing sources for its debt, including by trading debt for equity, additional stock offerings and the sale of assets.

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This sounds like things may be getting a bit better regarding finance, but who knows!

Many banks give consideration especially if the reason is good no matter how big the loan is. If your Loan is a secured loan the bank won't worry that you won't pay the debt because there is an asset declared. I just hope that the bank will also give consideration to those who really wants to pay but don't have yet survive to find any resources.

I am sure that with the new agreement with banks, Infogrames Entertainment would have really found a way to get out of a sticky situation with regard to its financial problems especially it has helped to buy more time to pay off its first installment!! They are still looking for ways of raising funds for additional refinancing source for its debt in however way it can – they sure seem to be desperate!!