The once mighty Spanish production and distribution concern Lolafilms is to get a Euros18m cash injection. The lifeline was approved on Friday (Mar 22) by shareholders, which include 70% owner Admira, part of the giant Telefonica group.
The amount is slightly lower than the Euros21.6m anticipated, but will give Spain's second leading production outfit a much-needed boost following estimated Euros11m of losses last year.
Shareholders, led by Admira and Lola CEO and founder Andres Vicente Gomez, who currently owns 13% of the company, have 45 days to put up the new cash, according to a statement released late Friday by Admira.
The statement confirmed that Vicente Gomez will maintain his position as CEO. But Admira looks to be taking a more active role in the management of the firm. Friday's announcement was accompanied by the appointment of a handful of executives to Lola's board of directors. These included Emilio Gilolmo as president of the board. Sources at Admira have called Lola "vital" to the company's content division to feed its multiple platforms.
Several Lola titles are currently awaiting release. These include Fernando Trueba's The Shanghai Spell (El Embrujo De Shanghai), Gerardo Vera's Desire (Deseo), John Malkovich's The Dancer Upstairs, Jordi Molla's We're Nobody (No Somos Nadie) and Daniel Monzon's The Biggest Robbery Never Told (El Robo Mas Grande Jamas Contado).