TV-Loonland signs debt-restructuring deal
EmptyCOLOGNE, Germany -- Long-suffering German kids entertainment group TV-Loonland has signed a debt-restructuring agreement with its creditors, raising the hope that the Munich-based company could yet avoid insolvency.
Under the deal, announced Thursday, Loonland's banks have agreed to write off €14 million ($18.8 million) of Loonland's €20 million ($27 million) debt in exchange for an equity stake of up to 10% of the company.
To help pay off the remaining €6 million ($8.1 million), Loonland will carry out a €2 million ($2.7 million) capital increase later this year.
The agreement must still be approved by Loonland shareholders but investors welcomed the news. Shares in TV Loonland shot up 24% to €0.52 ($0.70) in early trading Thursday.
Loonland said it will schedule a general shareholder's meeting soon to vote on the restructuring plan. At the meeting, Loonland will finally reveal its long-delayed financial figures for 2006 and the first half of 2007.