Business

SUMNER SQUEEZE

National Amusements, the movie-theater chain that controls Sumner Redstone’s interests in Viacom and CBS, faces the difficult task of getting more than 50 institutions to unanimously agree on revised terms to refinance $800 million of the company’s debt, The Post has learned.

The $1.6 billion debt load that National Amusements is carrying is divided into two $800 million pieces – one a bank loan and the other a private placement. The company is trying to refinance both simultaneously.

The bank loan, which was arranged by Banc of America Securities and comes due in December, requires approval from 50 percent of the lending institutions involved before its terms can be changed, according to two sources with knowledge of the loan’s terms.

But the taller hurdle rests with the $800 million private placement, which requires the OK of all 55 institutions that make up the syndicate before the terms of debt can be changed.

The sheer number of institutions in the private placement suggests that refinancing National Amusements’ debt isn’t going to be easy, despite Redstone’s proclamations that the discussions are going well.

“Do you know how difficult it is to get 55 people to agree on anything?” asked one source rhetorically.

Sources said Citigroup Senior Managing Director Stephen Volk, who worked closely with Viacom CEO Philippe Dauman during their days at law firm Shearman & Sterling, is currently soliciting consents on the private placement on behalf of National Amusements.

The company has formed a special committee of its board, made up of directors George Abrams, David Andelman, and Shari Redstone, Sumner’s daughter, to oversee the refinancing talks with the banks.

Redstone and Dauman, who are directors at both National Amusements and Viacom, have recused themselves from the talks to avoid a conflict of interest.

Representatives for National Amusements and Viacom declined comment. Volk did not return requests for comment.

National Amusements recently sold $233 million shares of non-voting stock in Viacom and CBS to avoid violating covenants on the $1.6 billion debt.

Dauman had to spend much of a budget meeting last Friday with Viacom senior executives walking them through the issues confronting National Amusements, according to one source with knowledge of the meeting.

And though this source said Dauman stressed that the issues at National Amusements are separate from Viacom and that Viacom’s financial situation was “strong” and its balance sheet “excellent,” he did concede that the company would be looking at ways to keep costs in line next year.

Employees translate the comments to mean layoffs.

“There’s an environment of fear,” said a source inside Viacom. “Everyone is worried about getting fired.”

peter.lauria@nypost.com