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Creditors Liquidate Germany’s KirchMedia

News, 17 June 2003

Creditors of German media group KirchMedia are to liquidate the business rather than pump new capital into it.

The company is in the hands of its four creditor banks – Commerzbank, Bayerische Landesbank, DZ Bank and HVB Group – after the collapse last year of its parent, German media empire Kirch Gruppe.

Earlier this month, the proposed sale to US billionaire Haim Saban fell through [WAMN: 06-Jun-03], and the banks have now decided not to continue pouring money into the business.

The new plan is to inject up to €300 million ($355m; £211m) into German TV giant ProSiebenSat.1, in which KirchMedia holds a controlling stake. The banks will provide around €150m of this capital, the remainder coming from KirchMedia.

The cash injection – to take place this year or in early 2004 – was approved by ProSieben shareholders Monday.

As KirchMedia is broken up, ProSieben will gain the rights to 2,000 titles in the Kirch rights library in a cut-price ten-year deal. In return, the banks will receive a share of the ad income earned from the programmes. The rest of the library will be sold off.

Data sourced from: multiple sources; additional content by WARC staff