COLOGNE — Film rights dealer Kinowelt Medien has filed for insolvency proceedings with the Munich court after talks with ABN Amro Bank failed.
Kinowelt said its petition is a precautionary measure following the 21-day maximum period after ABN Amro’s foreclosure. It said the move had no effect on its financial situation, and that all its subsidiaries will continue to operate.
Kinowelt last week claimed that it was sacrificed by ABN Amro so that the bank could get a legal grip on a $300 million film package that had actually reverted to Warner Brothers after Kinowelt failed to pay for it in time. Kinowelt suggested that ABN Amro did so on the assumption that a pending bankruptcy procedure would prevent WB from selling the films elsewhere in Germany.