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MONTREAL, Aug. 19 /CNW Telbec/ - Madacy Entertainment Income Fund
(TSX: MEG.UN) (the "Fund" or "Madacy") announces the completion of an
amendment to its banking facility.
Madacy announces today that it has entered into an Amendment with its
bank which has the effect of amending its covenant relating to fixed charge
coverage. In addition, the Fund agreed to be subject to a monthly financial
covenant with respect to its tangible net worth with effect commencing July
2008. As a result of such Amendments, we are in compliance with our banking
covenants. In addition, concurrently with such Amendments, the holding company
of the Chief Executive Officer provided a guarantee to the bank in the amount
of Canadian $2.0 million in order to provide the Fund with additional
liquidity for the coming few months as such months have seasonally high
working capital requirements.
"We are pleased to have completed this Amendment to our banking facility
as it permits us to be in compliance with all of our banking covenants and
provides us with additional working capital liquidity during this seasonally
important time of year," said Hillel Frankel, President of Madacy.
About Madacy Entertainment Income Fund
Madacy operates in the business of recorded music and home video products
with a primary focus on the development and marketing of budget and mid-priced
recorded music products. Madacy is also involved in the worldwide licensing of
its proprietary recordings. According to industry data, Madacy is the largest
independent budget and mid-priced music label in North America by number of
units sold. Madacy also develops and markets budget and mid-priced home video
Additional information relating to Madacy Entertainment Income Fund is
available at www.sedar.com and on Madacy's website at www.madacy.com.
For further information:
For further information: Hillel Frankel, President, Madacy Entertainment
Income Fund, (514) 341-5600 x333