The prediction follows the company's decision to file for insolvency proceedings in Munich last month due to pending illiquidity. IM also revealed that it had been working with a preliminary insolvency administrator on restructuring and streamlining the group to achieve this goal. The report noted that negotiations were underway with potential investors 'to advance the reorganization.'
The group generated turnover of $ 4.7m (Euros 3.4m) for the first six months of this year compared to $15m (Euros 10.8m) for the same period in 2007. According to the report this was 'mainly from overages of the film library and further accruals.' The fall in turnover was due to the fact that, compared to last year, no film had been released or any film project completed in these six months.
'The company is not able to continue its business without the help of third parties,' the report concluded.
Meanwhile, IM Internationalmedia is embroiled in another legal dispute following the decision of R Media Acquisition, LLC to file a lawsuit against Intermedia Film Equities USA, Inc., Intermedia Film Distribution, Inc., and IM Internationalmedia AG on the main counts of breach of contract and fraud.
According to a communique by IM, R Media 'mainly bases its lawsuit on the contract conditions to assume all liabilities of IM Stopping Power GmbH in September 2007. The value of the claim amounts to $7.76 m (Euros 5.5m).'
In July, the actor John Cusack had filed a $ 5.6m lawsuit claim against Intermedia Film Equities USA.Inc., Intermedia Film Equities Ltd. as well as IM Stopping Power GmbH and R Media Acquisition LLC in connection with the cancellation of Jan de Bont's action film Stopping Power in Germany a year ago.
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