Struggling Las Vegas entertainment firm in pact with lender

Monday, May 8, 2000 | 11:23 a.m.

On Stage Entertainment Inc. of Las Vegas said it reached a partial settlement with mortgage lender Imperial Credit Commercial Mortgage Investment Corp. of Los Angeles.

Last fall ICCMI sued On Stage, alleging the company defaulted on more than $13 million in loan payments. On Stage operates shows around the nation, including the Legends In Concert production at the Imperial Palace hotel-casino.

In December, ICCMI obtained foreclosure judgments against the company's subsidiaries Fort Liberty Inc. and King Henry's Inc. The judgments called for the sale of On Stage's King Henry's Feast in Orlando, Fla., and Fort Liberty Shopping Center in Kissimmee, Fla.; foreclosure sales were held last week for both properties.

The partial settlement announced Friday calls for a 30-day extension period during which ICCMI will forego collecting monies still owed and extend until June the foreclosure of On Stage's Legends In Concert Surfside Beach Theatre in Surfside Beach, S.C.

As part of the settlement, On Stage will continue to operate both Florida properties for an indefinite period of time, while negotiations continue with ICCMI over monies still owed.

In exchange, On Stage will receive a $9 million aggregate line of credit from ICCMI to operate the Florida and South Carolina properties.

However, company officials said there was no assurance future negotiations would successfully resolve the remaining issues. There was also no assurance ICCMI would allow On Stage to operate the theaters indefinitely, or that the lender would not pursue the monies still owed when the 30-day extension period expires on June 1.