'He-Man' home reworks financing
Entertainment Rights in 'constructive' talksLONDON -- Children's media group Entertainment Rights has secured temporary covenant waivers and interim funding from its banks and is in "constructive" talks about guaranteeing its future, chief executive Nick Phillips said Friday.
Announcing an 83 million pound ($134.2 million) impairment charge that led to pretax losses of 105 million pounds ($170 million) for the eight months ending in September, the company behind the "Lassie," "He-Man," "Postman Pat" and "Lone Ranger" brands said it is close to completing a financial and operational review identifying cost savings and possible disposals in a bid to pay down debt. Revenue for the period stood at 20 million pounds ($32.3 million).
Newly appointed CFO Edward Knighton said that the impairment charge stems from a re-evaluation of the company's core properties and businesses, which had been overvalued by the previous management.
"There was a culture of chasing short-term profit at the expense of short- to medium-term cashflow," he said. "It wouldn't be the first Plc. to do that, but we are cleaning up our slate and we see there is a need to realign with a more conservative view."
Shares in the company were down 17% at 1.58 pence (3 cents) on the news.