Germany's Kinowelt has confirmed that it has submitted plans for a $200m loan to the Frankfurt stock exchange.
Kinowelt's head of finances Eduard Unzeitig said the loan would be used to reduce current commitments to banks and in the long run would help optimise company financing. A report in German newspaper Financial Times Deutschland cited a need for a substantial cash infusion due to slow sales and high US-investments.
Kinowelt has been enjoying a successful year so far, with turnover at $115.5m, a 63% increase for the first six months of 2000.
But profits from its spending spree last year have not kicked in yet. Of the $347m the company reportedly spent on licenses for Hollywood-product last year - including a $243m film package from Warner Bros - the only substantial profit was a $30m sale of TV rights on 24 titles to German public broadcaster ARD.
The loan, which sources say, could be placed as soon as November this year by Germany's Hypo Vereinsbank, would allow investors be paid back in company stock at a later date.