Cablevision Sees $115M-$155M Of Costs For Voom Shutdown
May 11, 2005 07:51 ET (11:51 GMT)
WASHINGTON (Dow Jones)--Cablevision Systems Corp. (CVC) disclosed that it expects costs associated with the planned shutdown of its VOOM satellite-television operations to range from $115 million to $155 million.
The cable company said in its quarterly report filed late Tuesday with the Securities and Exchange Commission that the costs relate to early termination of various contracts, other contractual obligations, employee termination benefits and other costs.
The estimated shutdown costs don't include $45.8 million, which was recorded on its balance sheet at March 31, for the settlement of liabilities of VOOM.
Cablevision said it doesn't expect the shutdown costs to have a material impact on its liquidity position as it expects to fund the costs with proceeds from the sale of the Rainbow 1 direct broadcast satellite to EchoStar Communications Corp. (DISH) for $200 million.
Last month, the company confirmed that service for its VOOM satellite-television operations would end April 30.
Cablevison's board instructed management to continue to analyze whether its VOOM 21 channels could be marketed to other satellite and cable providers as part of its Rainbow programming operations.
As reported in March, Cablevision entered into an agreement with Chairman Charles F. Dolan and Thomas C. Dolan, a director of the company, to work cooperatively to finalize the separation of VOOM from the company. That agreement ended March 31.
Since then all expenditures of VOOM have been funded by Cablevision.
The company said that any of the $15 million deposited by Charles Dolan under the March agreement that isn't used to fund costs or segregated to pay costs associated with new commitments or other agreements will be returned to him, the filing said.
May 11, 2005 07:51 ET (11:51 GMT)
WASHINGTON (Dow Jones)--Cablevision Systems Corp. (CVC) disclosed that it expects costs associated with the planned shutdown of its VOOM satellite-television operations to range from $115 million to $155 million.
The cable company said in its quarterly report filed late Tuesday with the Securities and Exchange Commission that the costs relate to early termination of various contracts, other contractual obligations, employee termination benefits and other costs.
The estimated shutdown costs don't include $45.8 million, which was recorded on its balance sheet at March 31, for the settlement of liabilities of VOOM.
Cablevision said it doesn't expect the shutdown costs to have a material impact on its liquidity position as it expects to fund the costs with proceeds from the sale of the Rainbow 1 direct broadcast satellite to EchoStar Communications Corp. (DISH) for $200 million.
Last month, the company confirmed that service for its VOOM satellite-television operations would end April 30.
Cablevison's board instructed management to continue to analyze whether its VOOM 21 channels could be marketed to other satellite and cable providers as part of its Rainbow programming operations.
As reported in March, Cablevision entered into an agreement with Chairman Charles F. Dolan and Thomas C. Dolan, a director of the company, to work cooperatively to finalize the separation of VOOM from the company. That agreement ended March 31.
Since then all expenditures of VOOM have been funded by Cablevision.
The company said that any of the $15 million deposited by Charles Dolan under the March agreement that isn't used to fund costs or segregated to pay costs associated with new commitments or other agreements will be returned to him, the filing said.
