BERLIN -- Fallen mogul Leo Kirch was celebrating Tuesday after a Munich court ruled that comments made by former Deutsche Bank chief Rolf Breuer did contribute to the collapse of Kirch's vast media empire last year.
Kirch has demanded 100 million euros ($107 million) in compensation -- but the amount is to be decided separately. Deutsche Bank has said it will appeal.
The court found that Breuer's interview with Bloomberg TV in February 2002, in which he expressed doubts about Kirch's creditworthiness, violated client confidentiality and that he and the bank must compensate Kirch and Taurus Holding (the Kirch Group umbrella company) for damages.
In the interview, Breuer cited news reports and added, "What one is reading and hearing is that the financial sector is not prepared to supply further funds or outside resources (to Kirch)."
"That was the death sentence for the Kirch Group," Kirch's lawyers said. Two months later Kirch's core business Kirch Media filed for insolvency.
Meanwhile, German publisher Heinrich Bauer appeared to be winning the bidding battle for Kirch Media's TV and film library assets Tuesday despite a statement from Gallic TV group TF1 confirming its interest.
Company said it was "studying a potential purchase of some assets of the Kirch Media group" with U.S. billionaire Haim Saban.
TF1's interest in Kirch has been on and off since last summer when bidding began.
A takeover by Bauer nevertheless looks likelier than it has in days after a meeting between Saban reps and Kirch creditors was reportedly cancelled on Monday.
However, the disposal of other disputed assets continues. German kidvidder EM.TV has agreed to sell its 16.7% stake in Formula One motor racing to German bank Bayern LB for the knock-down price of $9.1 million as part of an out-of-court settlement with Kirch Media's creditor banks in a dispute over ownership.
Former EM.TV topper Thomas Haffa put the 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 58% stake in Formula One holding company SLEC, which is based in Jersey, one of the Channel Islands between the U.K. and France. But the deal left Kirch dangerously in debt and contributed to its bankruptcy.
In December EM.TV won an injunction in a Jersey court blocking Kirch creditors from selling the stake.
The out-of-court deal gives EM.TV an option for a percentage of future revenues Bayern LB may get from the sale of the stake, which is expected to go to Formula One automakers.
In return, EM.TV is dropping its court case against the bank and fellow Kirch creditors J.P. Morgan Chase & Co. and Lehman Brothers.
However, EM.TV is writing down the stake's book value of $218 million and said it will have no effect on its liquidity.
Contact Ed Meza at
ed.meza@mannaa.de