The parent company of cable digital-music service DMX may have slipped into
technical default on its bank loans.
The company, Maxide Acquisition, was created when Liberty Digital-controlled DMX
merged with commercial "elevator-music" provider AEI Music Network Inc. last May.
Liberty Digital said in a securities filing that Maxide may have fallen out
of compliance with $120 million in bank loans made at the time of the merger.
A complete assessment will come after Maxide finishes its annual audit, but
Liberty said Maxide is negotiating with its lenders for a waiver of the
Liberty Digital and Maxide executives could not be reached for comment.
DMX feeds audio-music channels to cable operators, which package them as part of
their digital-cable lineups.