SOURCE: Seven Arts Pictures plc

Seven Arts Pictures plc

December 07, 2010 13:07 ET

Seven Arts Pictures Plc Announces Refinancing of Its Production and Post-Production Facility in New Orleans

HOLLYWOOD, CA--(Marketwire - December 7, 2010) - Seven Arts Pictures Plc (NASDAQ: SAPX) ("Seven Arts") announced today that it has refinanced the loan facility for its production/post-production center in New Orleans, Louisiana, with Palm Finance Inc. As a result of the refinancing of this loan facility, Advantage Capital Community Development Fund has assigned to Palm a loan of approximately $4,200,000 principal and accrued interest for repayment of the sum of $1,000,000 which will reduce Seven Arts' guarantee on the loan facility by that same amount. Palm has also extended an additional line of credit of $1,850,000 to complete construction of the production and post-production center which Seven Arts expects to have fully completed by May 31, 2011.

Seven Arts' affiliates have been engaged in production and post-production activities on this property since its acquisition at the end of 2007 and expect to conduct production and post-production activities there on its upcoming Louisiana productions, including Booty Patrol and Schism which have been in production since September of this year. Seven Arts expects expenditures on its production and post-production center to generate in excess of $7,500,000 of federal and state historic infrastructure and state film infrastructure tax credits from its expenditure in connection with this production and post-production facility.

Peter Hoffman, CEO of Seven Arts, commented: "We are excited to continue our long-standing relationship with Palm Finance by a substantial reduction of the indebtedness against our production and post-production facility at 807 Esplanade in New Orleans. Palm has also graciously extended us a $1,850,000 construction facility which will permit completion of the building by May 31, 2011. Seven Arts has been using this facility for its production and post-production activities since 2007 and intends to increase its use with its current program of lower budget pictures in Louisiana. Seven Arts further intends to adopt a trainee and film seminar program with local education institutions to expand the job training and skills available in Louisiana as part of Seven Arts' commitment to the Louisiana film program, which has been so beneficial to Seven Arts and its productions."

About Seven Arts:

Seven Arts Pictures plc was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.

Cautionary Information Regarding Forward-Looking Statements:
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

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