Following its recent announcement to implement a capital increase of 769,695 new ordinary shares to finance further investment in the production of new animated series, BKN International (BKNI) has now received an offer of support from its largest shareholder, Durham Capital Holdings "to ensure that the management of BKNI retains flexibility to pursue these opportunities in line with the company's stated growth strategy".

Durham has agreed to invest Euros 1m as part of the proposed share offering and to revise the terms under which BKNI previously acquired US library assets from its former US parent company. This will result in production savings of Euros 2m for this year and the deferral of a purchase payment of Euros 1.7m until 1 January 2003. BKNI now expects the outstanding amount due on the US library acquisition on September 30 to be Euros 3.9m (exclusive of the Euros 1.7m deferral).