German producer-distributor Senator Entertainment is to hold talks with its financing banks in a bid to save the company from collapse.
The move was announced yesterday when the Berlin based company said it had to write-off the value of some of its film assets and investments - a move which could lead to the "exhaustion of half or all of the share capital" in the company.
In a statement, Senator blamed "the continually deteriorating market conditions in the cinema sector as well as in international and national license trading".
The move comes as Senator prepares its 2003 financial statement. It said the write-offs would "probably lead to a considerable correction of the initially planned financial statement"
The company said that the majority of the depreciation will be on older titles in its catalogue.
Turnover for the financial year of 2003 is set to be "in all probability and according to plan" between Euro 54m-57m with the EBITDA coming out at between Euro 20m-24m.
Shares in Senator fell by over 30% to as low as 56 cents during trading on Wednesday. Analysts at Stadtsparkasse Cologne corrected their rating for Senator's stocks to "underperformer".