Menu
08/04/2002
KirchMedia declared insolvent as rescue package fails
KirchMedia has been declared insolvent after a last-minute rescue package by investors failed to materialise over the weekend.
The failure of KirchMedia to survive its creditors will, however, not threaten owner Leo Kirch's most lucrative assets – the rights to broadcast the World Cup finals and the Formula One racing championships. Indeed, the World Cup rights have been divested to an independent subsidiary based in Switzerland – far away from German courts.
Backers of the media giant's owner, Leo Kirch, have said that the bankruptcy of the company does not necessarily mean that the rapid sale of assets elsewhere could not win KirchMedia a reprieve from administrators. However, bankers now expect a domino effect within the Kirch empire as they believe Taurus, the parent holding company of Kirch's ventures, will also be declared insolvent.
The failure of debt-laden KirchMedia could have a widespread effect in the banking markets as up to eight major German banks could be hit by the writing off substantial portions of Kirch's mammoth €6.5 billion debt mountain. Bayerische Landesbank are the group's biggest creditor to the tune of €1.9 billion, Deutsche Bank are owed €700 million and both DVB and Dresdner Bank are owed €460 million. However, the banks moved quickly to dispel any fears, stating that there would be sufficient financial collateral to cover any losses.
The severe financial straits that British Nationwide League clubs are facing in the wake of the ITV Digital collapse could be mirrored in the Bundesliga as failed pay-TV venture Premiere – haemorrhaging around $1 million a day – winds down. The Bundesliga were to be paid €360 million this year and €460 million for the final year of the broadcast contract.
The fight over Kirch assets will be intense as Rupert Murdoch's BSkyB, which has a 22 per cent stake of Kirch PayTV, and Italian Prime Minister Silvio Berlusconi's rival interests pick over what remains.
Kirch's Premiere Pay-TV is where most of the damage to the corporation has occurred. For 2001, the company posted a core loss of €864.9 million with debts of €962 million.
(GMcG)
The failure of KirchMedia to survive its creditors will, however, not threaten owner Leo Kirch's most lucrative assets – the rights to broadcast the World Cup finals and the Formula One racing championships. Indeed, the World Cup rights have been divested to an independent subsidiary based in Switzerland – far away from German courts.
Backers of the media giant's owner, Leo Kirch, have said that the bankruptcy of the company does not necessarily mean that the rapid sale of assets elsewhere could not win KirchMedia a reprieve from administrators. However, bankers now expect a domino effect within the Kirch empire as they believe Taurus, the parent holding company of Kirch's ventures, will also be declared insolvent.
The failure of debt-laden KirchMedia could have a widespread effect in the banking markets as up to eight major German banks could be hit by the writing off substantial portions of Kirch's mammoth €6.5 billion debt mountain. Bayerische Landesbank are the group's biggest creditor to the tune of €1.9 billion, Deutsche Bank are owed €700 million and both DVB and Dresdner Bank are owed €460 million. However, the banks moved quickly to dispel any fears, stating that there would be sufficient financial collateral to cover any losses.
The severe financial straits that British Nationwide League clubs are facing in the wake of the ITV Digital collapse could be mirrored in the Bundesliga as failed pay-TV venture Premiere – haemorrhaging around $1 million a day – winds down. The Bundesliga were to be paid €360 million this year and €460 million for the final year of the broadcast contract.
The fight over Kirch assets will be intense as Rupert Murdoch's BSkyB, which has a 22 per cent stake of Kirch PayTV, and Italian Prime Minister Silvio Berlusconi's rival interests pick over what remains.
Kirch's Premiere Pay-TV is where most of the damage to the corporation has occurred. For 2001, the company posted a core loss of €864.9 million with debts of €962 million.
(GMcG)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
05 April 2002
KirchGruppe on verge of insolvency
KirchGruppe, the German media group owned by Leo Kirch, was on the brink of insolvency on Friday April 5 as rescue talks in Los Angeles and Munich failed to produce an escape route for the debt-laden company.
KirchGruppe on verge of insolvency
KirchGruppe, the German media group owned by Leo Kirch, was on the brink of insolvency on Friday April 5 as rescue talks in Los Angeles and Munich failed to produce an escape route for the debt-laden company.
10 June 2002
Consortium prepares buy out of KirchMedia
KirchMedia, the majority stakeholder of the free-to-air broadcaster ProSeibenSat 1 and part of the ailing German media giant Kirch Gruppe, is on the verge of being bought over by a consortium comprising of WAZ Gruppe, Commerzbank AG and Columbia TriStar.
Consortium prepares buy out of KirchMedia
KirchMedia, the majority stakeholder of the free-to-air broadcaster ProSeibenSat 1 and part of the ailing German media giant Kirch Gruppe, is on the verge of being bought over by a consortium comprising of WAZ Gruppe, Commerzbank AG and Columbia TriStar.
07 November 2005
Two million people ‘bullied at work,' say TUC
Around two million people claim to have been bullied at work in the past six months, the Trade Union Congress has revealed. The TUC estimated that around 18 million working days are lost each year because of bullying.
Two million people ‘bullied at work,' say TUC
Around two million people claim to have been bullied at work in the past six months, the Trade Union Congress has revealed. The TUC estimated that around 18 million working days are lost each year because of bullying.
04 May 2005
Waterford Wedgwood to cut 1,800 jobs
Waterford Wedgwood has announced plans to cut 1,800 jobs as part of a 90 million euro restructuring programme. The fine crystal and china makers said that the jobs losses would include the loss of 485 jobs at the Dungarvan plant in Ireland, which is to close after being in operation for over 30 years.
Waterford Wedgwood to cut 1,800 jobs
Waterford Wedgwood has announced plans to cut 1,800 jobs as part of a 90 million euro restructuring programme. The fine crystal and china makers said that the jobs losses would include the loss of 485 jobs at the Dungarvan plant in Ireland, which is to close after being in operation for over 30 years.
05 December 2003
Staff represenation needed for small businesses, say TUC
Three years after the majority of UK workers won the right to be represented by a union, six million employees in small firms are still being denied a voice at work, according to a report from the TUC.
Staff represenation needed for small businesses, say TUC
Three years after the majority of UK workers won the right to be represented by a union, six million employees in small firms are still being denied a voice at work, according to a report from the TUC.
-
Northern Ireland WeatherToday:Any early mist soon clears to leave a dry and warm day with increasing sunny periods, these may be hazy due to lingering high cloud. Maximum temperature 21 °C.Tonight:It will stay dry throughout the night with long clear periods. It will also feel mild in a light southerly breeze. Minimum temperature 9 °C.
