Debt-laden Kinowelt is close to completing its withdrawal from the exhibition sector having sold the Kinopolis multiplex chain. It now expects to dispose of its 25% minority holding in a clutch of Village Roadshow-controlled complexes by the end of this month.
The group, which is in insolvency discussions, said that it does not expect to be able to agree rescue terms with banks and investors until the second half of April. These could see investors take over or buy into Kinowelt's core theatrical distribution, home entertainment and license trading activities.
Wolfgang Ott, insolvency administrator of Kinowelt Medien and the Kinowelt Lizenzverwertungs subsidiary, said: "[I cannot] exclude the possibility of the ambitious timetable being subject to delay. The sole reason is the sheer complexity of the matters under negotiation." But he said that there were sufficient funds to meet day-to-day requirements, including salaries.
Meanwhile the outfit continues to sell other offshoots. This week it sold its 51% holding in Leipzig-based TV production house DREFA Produktion und Lizenz, with effect backdated to January 1, to existing shareholder DREFA Media Holding.