White knight leaves IM in the castle dungeon

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Troubled Intermedia parent IM Internationalmedia AG has filed for bankruptcy because of "pending illiquidity," the company said Tuesday.

IM said that its white knight investor group, Eluvium GmbH, "did not pay for exercised options," thereby putting "continued business operations at risk." German investor protection authorities are investigating Eluvium, IM manager Sascha Prestel told The Hollywood Reporter.

Embattled indie film investor David Bergstein introduced the Eluvium group to IM, though is not affiliated with Eluvium himself, he said. His R Media Acquisitions, which has provided IM with $11 million in financing, blamed the financial crisis on IM management's "lavish lifestyles" and its failure to pay its senior debt.

Eluvium bailed out Internationalmedia in a €6.9 million ($10.2 million) deal in January after the company halted production on its John Cusack starrer "Stopping Power" in 2007. (partialdiff)
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