Creditor banks of German media mammoth Kirch Gruppe’s flagship rights arm KirchMedia – which last week filed for insolvency [WAMN: 09-Apr-02] – have reportedly agreed to pump another €100 million ($89m; £61.5m) into the unit.
Bayerische Landesbank, HypoVereinsbank, Commerzbank and DZ-Bank will supply the capital to ensure KirchMedia remains a going concern into the near future, dividing the sum in accordance with their current exposure to the unit.
The cash will guarantee KirchMedia’s survival while the insolvency administrator works with new management to try to secure further funds. Upwards of €1 billion in new investment is required to keep the unit afloat in the long term.
Meanwhile, the creditors rejected as “nonsensical” rumours that KirchMedia is contemplating withdrawing its insolvency application.
Data sourced from: Handelsblatt (Germany); additional content by WARC staff