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PRESS RELEASE
For Immediate Release
Akron,
OH, January 5, 2009 -
The Carousel Dinner
Theatre, LLC has
cancelled its 2009
season and closed its
doors effective January
4, 2009.
For the past year, the
economy has materially
affected the theatre’s
attendance and its
ability to make cost
adjustments to keep pace
with the decrease in
attendance. The final
tipping point became the
reversal of certain
stakeholders’ written or
verbal promises that
would have had a major
impact on the theatre’s
continuance for the 2009
season and beyond.
Mr. Joseph E. Palmer
accepts full
responsibility for this
action and regrets the
impact on one hundred
fifty employees and
their families and all
others affected by this
closure.
Ticket holders who have
purchased advanced
tickets and gift
certificates on their
credit cards should
immediately contact
their credit card
company to process a
full refund.
The Carousel Dinner
Theatre
Joseph E. Palmer
Executive Producer/CEO
ATTN: Creditors and
Cash Ticket Holders,
Subscribers, Gift
Certificate Holders
It is with the greatest
of all possible regrets
that I inform you that
the Carousel Dinner
Theatre, LLC has closed
its doors as of January
4, 2009.
As of December 31, 2008,
Carousel’s fair value of
assets totals
approximately $2,688,000
while its liabilities
exceed $6,482,000. The
major lender has a first
mortgage on all real
estate and a first lien
on all the other assets.
This lender is owed over
$1,825,000, plus any
accrued interest to the
date of pay-off. A
subordinated debt holder
with a second mortgage
on the theatre’s land is
owed over $1,750,000,
plus on-going accrued
interest.
Carousel will liquidate
its assets and pay over
the proceeds to the
major lender. If any
funds are left over, the
subordinated debt holder
will be paid the fair
value of the security,
subject to the rights of
the preferential
creditors. Remaining
funds will be paid
pro-rata to the
creditors. At best,
there will $800,000 left
over to distribute
against $4,457,000 in
obligations.
Realistically in today’s
market, there will be no
excess funds to
distribute.
The decision to close is
the result of the
economy exacerbated by
the actions of a few
significant creditors.
For questions, please
contact Mr. Joseph E.
Palmer by e-mail:
jpalmer@carouseldinnertheatre.com.
Sincerely,
Joseph E. Palmer
Executive Producer/CEO
Ticket or Gift
Certificates purchased
by Debit Card in the last 60
days – please contact your
bank and request credit
under their dispute
procedures.
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