BERLIN -- Still trying to salvage what is left of the one-time German minimajor, cash-strapped film group Kinowelt has sold off an 8% stake in Marburg-based video-on-demand company Media(netCom) for $3 million.
Kinowelt is seeking to divest itself of all noncore assets as it undergoes initial bankruptcy proceedings.
The 622,222 shares in media(netCom) were picked up by three financial investors with no previous links to the company. Sale boosted Kinowelt shares last week by 20% to 29 euro cents (26¢).
After it posted losses of nearly $300 million in the first nine months of 2001 and Dutch bank ABN Amro canceled its credit line, Kinowelt was forced to begin insolvency proceedings; however, company is seeking to keep itself afloat and is continuing with drastic restructuring measures.
Kinowelt recently released the critically acclaimed Danish pic "Italian for Beginners," which has enjoyed modest box office success on the local arthouse circuit.
Contact Ed Meza at
ed.meza@mannaa.de