MoviePass Runs Low on Cash, Gets Loan to Restore Service
- Hudson Bay Capital Management extends about $6 million loan
- MoviePass parent must repay half of the debt on Aug. 1
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The parent company of MoviePass got a hastily arranged short-term loan to resume operating after failing to pay key business partners and customers were barred from theaters Thursday and Friday.
Helios and Matheson Analytics Inc. will use $5 million of the approximately $6 million loan from Hudson Bay to pay its processors, the company said in a regulatory filing Friday. Service went down Thursday after the processors stopped clearing payments for MoviePass, which said more hiccups could hurt the company’s ability to retain its subscribers. The company said in a tweet Friday afternoon in New York that service had been restored.