Redstone advisor expands role

Blackstone Group, Shari Redstone’s advisor, has expanded its role in recent weeks to assist National Amusements Inc. in restructuring $1.6 billion in debt, four people familiar with the discussions said.

National Amusements is negotiating with its bankers to refinance two $800-million loans, one that was due Friday and another that is due next year. Blackstone’s involvement will aid Shari Redstone in selling her 20% stake in the privately held movie theater company to her father, Sumner Redstone, who owns the rest, once the debt issues are resolved, said two of the people, who sought anonymity because talks are private.

Shari Redstone, 54, has run the Dedham, Mass., company’s 1,500-screen movie theater chain since the mid-1990s. She is on the board committee overseeing talks with lenders, and is vice chairman of CBS Corp. and Viacom Inc., the New York media companies controlled by her father through National Amusements.

Before the debt crisis, Shari Redstone was nearing a deal with her father to retain ownership of the circuit in exchange for her 20% stake in National Amusements. A drop in CBS and Viacom shares put National Amusements in violation of loan terms, forcing Sumner Redstone to sell $233 million of nonvoting stock in October.

In its expanded role, Blackstone is advising National Amusements on obtaining financing as Citigroup Inc. examines potential asset sales and New York investment bank Rothschild Inc. leads discussions with creditors, one of the people said.

With Blackstone involved, an agreement between the Redstones may be reached as part of the restructuring, or soon after a bank resolution, said two of the people.

Sumner Redstone and National Amusements declined to comment, as did spokesmen for Blackstone and Bank of America, which is leading a syndicate of bankers to whom the $1.6-million debt is owed.