$4 million owed to former co-producer
COLOGNE — Kids and family entertainment producer RTV has issued a warning that it may have to file for insolvency this year unless it can reach settlements in an ongoing legal case.
RTV is struggling over a payment of around $4 million to former co-producer Videal, which is due this year. Because of the outstanding debt, Videal has refused to OK a deal signed in early 2004 with kidvidder EM.TV.
RTV noted that it hopes for an agreement by midyear, but pointed out that a continued legal action could force it into insolvency.
Red runneth over
Company is also suffering from annual interest it pays on loans. It said banks were willing to restructure debts on the condition that the conflict with Videal is settled.
RTV in 2004 saw sales drop to S6.4 million ($8.5 million) from $12.1 million in 2003. Pretax loss widened 100% to $3.9 million.
The company’s equity Dec. 31 was $4.7 million, down from $10.1 million the year prior.