BERLIN — Bankruptcy proceedings for financially troubled German producer-distributor Kinowelt Medien opened Wednesday after months of restructuring and negotiations with potential investors failed.
Kinowelt Medien and its Kinowelt Lizenzverwertung rights division filed for bankruptcy in December when it was unable to meet a €71 million ($65 million) payment to creditor bank ABN Amro.
The one-time Teutonic mini-major, whose fortunes soared and crashed along with those of Germany’s Neuer Markt, had tried to sell noncore assets. While a new investor was close to taking over its core film distribution, home entertainment and rights divisions, company said that last month’s bankruptcy of German giant Kirch Media complicated negotiations.
Kinowelt has found a buyer for its stake in the Kinopolis exhib chain.
After its public flotation in 1998, Kinowelt went on a shopping spree that included the acquisition of a $300 million film package from Warner Bros. But most of Germany’s TV webs refused to buy the high-priced pics.