Senator rescued from insolvency
Creditors approve restructuring plan for Teuton distrib
As part of the agreement, creditors have agreed to waive up to 90% of outstanding debt. Senator's total liabilities totaled nearly $220 million. In June, Deutsche Bank London acquired $204 million of that debt for a reported $30 million, becoming the company's main creditor. It will now transform that debt into a majority share in the company and is set to inject necessary capital into the group.
Senator shareholders will also have to stomach a loss: the plan also foresees a cut in share capital from $41 million to $4.1 million, raising the price of the remaining shares tenfold. A capital increase will follow, watering down the share price but allowing the further sale of shares in the company.
Senator, Germany's second-biggest film producer-distrib, filed for insolvency protection in April as a result of massive writedowns. It had been plagued by financial difficulties stemming from a severe devaluation of its film library and investments that vaporized its capital.
Company's main production and distribution arms have remained operational and last year enjoyed huge successes with local hits "The Miracle of Bern" and "Good Bye, Lenin!"
