The survival of ailing post-production group Das Werk has been given a crucial boost through the granting of a credit line of more than Euros60m ($58.5m) and the extension of previous loans by a banking pool that includes BHF Bank, Deutsche Bank and Commerzbank.
The additional funds were made available after the banks approved Das Werk's restructuring programme that is concentrated around its core film and TV post-production businesses. The restructure has already resulted in the loss of 100 jobs.
The group's lines of credit includes around Euro 47m for financing film projects at Road Movies and Promark Entertainment and approximately Euro 15m from local Spanish banks to support the En Efecto post-production group. They now total some Euro 124m, of which Euro 96m had been drawn upon by June 30 2002.
In an attempt to streamline its film and TV post-production business, Das Werk's facilities in Duesseldorf, Frankfurt, Hamburg and Munich have been merged into a new German company, Das Werk Deutschland that will also have Frankfurt-based Zweigwerk and Cologne-based Daily Post as subsidiaries. The group's remaining postproduction houses will continue to operate under the umbrella of Das Werk AG.
The banks' decision to continue supporting Das Werk was well received by investors. Das Werk shares climbed by 46% to Euro 1.20 during morning trading Tuesday, after the new credit line was revealed.