http://money.iwon.com/jsp/nw/nwdt_r...050310&date=20050310&alias=/alias/money/cm/nw
Cablevision Chairman To Use Cash, Stock To Fund Voom
Thursday March 10, 11:26 AM EST
WASHINGTON (Dow Jones)--Cablevision Systems Corp. (CVC) Chairman Charles Dolan on Thursday said he plans to use his own cash and stock in the company to fund the operations of the Voom satellite-television service until March 31, according to an amended Schedule 13D filed with the Securities and Exchange Commission.
On Tuesday, Charles Dolan and his son, Thomas Dolan, entered into an agreement with Cablevision under which Charles Dolan will fund costs of the company's Rainbow DBS business above the costs that would have been incurred under a shutdown budget.
Under the agreement, Dolan will deposit with Cablevision cash and shares of Class A common stock or Class B common stock to fund the costs. The cash and shares will have a market value of $10 million, the filing said.
As reported, the agreement allows Rainbow DBS to remain in operation and continue providing its Voom service to subscribers while Charles and Thomas Dolan seek to arrange an alternate transaction that would avoid a shutdown of Rainbow DBS.
The withdrawals will be made first from cash amounts, then from any shares of Class A common stock and finally from any shares of Class B common stock that may have been deposited, the filing said.
Upon the termination of the DBS agreement, all cash and stock deposited by Dolan but not used to fund costs of the Rainbow DBS business will be returned, the filing said.
Cablevision Systems is an entertainment, media and telecommunications company.
-By Brian Coyle, Dow Jones Newswires; 202-862-3545
Dow Jones Newswires
03-10-05 1126ET
Cablevision Chairman To Use Cash, Stock To Fund Voom
Thursday March 10, 11:26 AM EST
WASHINGTON (Dow Jones)--Cablevision Systems Corp. (CVC) Chairman Charles Dolan on Thursday said he plans to use his own cash and stock in the company to fund the operations of the Voom satellite-television service until March 31, according to an amended Schedule 13D filed with the Securities and Exchange Commission.
On Tuesday, Charles Dolan and his son, Thomas Dolan, entered into an agreement with Cablevision under which Charles Dolan will fund costs of the company's Rainbow DBS business above the costs that would have been incurred under a shutdown budget.
Under the agreement, Dolan will deposit with Cablevision cash and shares of Class A common stock or Class B common stock to fund the costs. The cash and shares will have a market value of $10 million, the filing said.
As reported, the agreement allows Rainbow DBS to remain in operation and continue providing its Voom service to subscribers while Charles and Thomas Dolan seek to arrange an alternate transaction that would avoid a shutdown of Rainbow DBS.
The withdrawals will be made first from cash amounts, then from any shares of Class A common stock and finally from any shares of Class B common stock that may have been deposited, the filing said.
Upon the termination of the DBS agreement, all cash and stock deposited by Dolan but not used to fund costs of the Rainbow DBS business will be returned, the filing said.
Cablevision Systems is an entertainment, media and telecommunications company.
-By Brian Coyle, Dow Jones Newswires; 202-862-3545
Dow Jones Newswires
03-10-05 1126ET