Shareholders to vote on Senator plan

Scheme calls for cut in co. shares followed by capital increase

BERLIN — Senator Entertainment may be saved from bankruptcy if a plan hammered out by its insolvency administrator and creditor banks is approved by shareholders on June 17.

The plan calls for a cut in company shares by 10 to one, followed by a capital increase at the same ratio.

Senator shares are trading at E0.25 (30¢). The capital decrease would lower the number of shares on the market and raise the price of the remaining shares tenfold. The planned capital increase that follows would water down company stock, making it easier for investors to come aboard but severely lower the value of stock held by current shareholders.

Nevertheless, Senator shareholders have little choice: if they reject the plan, the insolvency administrator is expected to hive off the group’s most valuable assets, essentially dissolving it.

Company’s debt is around $225 million, but its main production and distribution arms are operational after creditor banks extended financing last month.

Interested investors are said to include Constantin Film and parent company Highlight Communications, Falcom and Kinowelt plus venture capital funds.

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