Converse Inc (OTCBB:CVEO) today announced that it has received a proposal from a private investment group to provide $25,000,000 in new financing. The move comes after the company made a net loss of $9.4m in the year-to-date.Last week, an alternative investor offered a commitment letter for $55,000,000 in bridge financing in connection with a contemplated license income securitization transaction, but the conditions required were not acceptable to the company. The $25,000,000 financing is subject to the negotiation of definitive legal documentation, final approval of the company's board, and requires the existing secured creditors of Converse to consent to the transaction. The transaction is expected to close by August 31, 2000. Converse is currently in default of certain financial covenants under its senior secured bank line of credit and its senior secured notes. Converse is also in default under its 7 per cent convertible subordinated notes, because it did not make a June 30 interest payment to the holders of such notes (the "Subordinated Noteholders"). Certain subordinated noteholders have established an unofficial committee to represent them. It has met with the company to address restructuring its obligations to them. Converse has provided the committee with financial and other information not yet publicly disclosed.