EMTV halts Kirch sale of Formula stake
Reprieve only temporary
A court on the island of Jersey, one of the Channel Islands between the U.K. and France, ruled that Bayern LB, J.P. Morgan Chase & Co. and Lehman Brothers may not sell the stake off just yet.
The banks have been trying to unload it to Formula One automakers, who want to launch their own racing event.
Former company topper Thomas Haffa put the €204 million ($204 million) stake up as collateral for $1.6 billion loans to the Kirch Group as part of a rescue plan to save EM.TV from bankruptcy.
Kirch ended up with a 75% stake in the Jersey-based Formula One holding company SLEC following the deal but was also left dangerously in debt. The Kirch empire began to collapse in April, when its core TV and rights unit Kirch Media filed for bankruptcy.
EM.TV's legal victory means Kirch's lenders will have to wait for a court ruling before they can proceed with the sale.
EM.TV topper Werner Klatten argues that the banks' claim on the Formula One stake is invalid. The bank deal was made according to Jersey law.
