Scottish Media Group Writes-Off £100m to Placate Auditors

18 March 2002

Debt-beset Scottish Media Group, the largest UK media conglomerate north of Hadrian's Wall, is poised to write-off up to £100 million ($142.27m; €161.85m) against recent acquisitions.

The write-down is expected to placate auditors involved in the restructuring of its £390m debt millstone – agreed with creditors last Friday. The accord ensures that funding will be extended until June 2003.

The burrs beneath the acquisition saddle are Scottish Radio Holdings, of which SMG now owns 29.45%; and Ginger Media Group, the holding company for Virgin Radio and former fiefdom of erratic TV personality Chris Evans.

SMG’s full year results are expected later this week and insiders predict they will reveal a write-down of between £60m-£100m.

Data sourced from: BrandRepublic (UK); additional content by WARC staff