Kinowelt faces insolvency suit

Teuton co. posts $277 million loss

BERLIN — Dutch bank ABN Amro has filed an insolvency suit against beleaguered German entertainment group Kinowelt Media.

ABN Amro put the claim on Kinowelt’s assets after the media company was unable to fulfill a $45 million loan payment due Nov. 28.

Kinowelt is desperate not to go bankrupt and said it is seeking a mutual solution with the bank. Company is also in talks with the Bavarian state government. Even so, Kinowelt admitted there was an “acute risk of insolvency.”

The move follows the cancellation of a $300 million TV package deal between Warners and Kinowelt (Daily Variety, Nov. 29).

The latest twist in Kinowelt’s saga came as the company posted a nine-month loss of $277 million, compared to a profit of $8 million in the same period last year. Sales were down 20% to $151 million.

While the return of the programming package to Warners has decreased Kinowelt’s need for future liquidity, the company is still burdened with high debt.

Kinowelt said it was hit hard by restructuring measures, continued difficulties with programming sales, and poor sales from its merchandizing biz.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading