Financially strapped German animation group TV-Loonland filed for insolvency Wednesday, saying it was unable to meet its debts.
Company blamed its shareholders for blocking a proposed 10 to one share consolidation, which would have replaced the group’s stock with a smaller number of shares with a higher par value.
TV-Loonland said that because its “shareholders repeatedly refused approval of share consolidation” in November 2008 and again last month, it was “not able to raise cash through an equity injection. Therefore the company cannot clear all debts on the respective due dates.”
Company also announced the appointment of Michael Briem as its chief exec. In taking the post, Briem steps down from his previous position of supervisory board chairman. He replaces Simon Flamank, who announced in October that he was ankling.
TV-Loonland, which produces a slew of animation, including “Little Princess,” had been trying to restructure its operations over the past year amid the global downturn while entangled in litigation with former CEO Selma Kaeppel, who was convicted of fraud.