Comdex producer pays LVCVA

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Thursday, March 27, 2003 | 9:37 a.m.

The bankrupt producer of the annual Comdex computer exhibition has received approval for debtor-in-possession financing and has paid an outstanding debt to the Las Vegas Convention and Visitors Authority.

Key3Media Group Inc., Los Angeles, received Bankruptcy Court approval for a $30 million financing package from Thomas Weisel Capital Partners, a banking affiliate of the investment firm Thomas Weisel Partners LLC, San Francisco.

A spokeswoman for the LVCVA said today that Key3Media earlier this month made two payments totalling $1.2 million to make it current on its debt for space leased at the Las Vegas Convention Center. Clearing the debt was important to the tech show producer because it plans to conduct its annual Networld + Interop show in Las Vegas in May.

In addition to winning financing approval, Key3Media also reached agreement with creditors for a reorganization plan through which it will reduce debt from $372 million to $50 million, cutting interest expenses from $38 million a year to $3.4 million a year.