LV entertainment firm defaults on debt

Tuesday, June 1, 1999 | 11:07 a.m.

On Stage Entertainment Inc. of Las Vegas said it's in default on $14.15 million in debt to its mortgage lender.

Imperial Commercial Credit and Investment Corp. of Los Angeles sent the default notice to On Stage after the company missed loan payments for the past three months.

On Stage had used the $20 million credit line in 1998 to acquire seven properties in Orlando, Fla., Buena Park, Calif., Surfside Beach, S.C. and North Myrtle Beach, S.C. The company said in a statement Friday it was attempting "to negotiate a resolution of the defaults, and an appropriate refinancing or restructuring of the debt." However, it said it could not ensure that Imperial would not foreclose on the properties.

In April, On Stage's attempt to acquire the entertainment division of Casino Resource Corp. of Ocean Springs, Mass. for $13.8 million fell through after the company was unable to find financing for the deal. On Stage had proposed to use $6.5 million of the Imperial credit line for that acquisition.

In May, On Stage reported a first quarter net loss of $884,000, compared to a loss of $529,000 one year before. Net sales rose 68 percent over the same period, to $6.27 million.

In Las Vegas, On Stage operates the Legends in Concert show at the Imperial Palace hotel-casino. It produces and markets theatrical productions and operates theaters and dinner theaters nationwide.