Endemol Shareholders Could Retain Control Of Company Post Debt Restructuring (Report)

Goldman Sachs, Mediaset and Cyrte may end up with stakes diluted to below 50% but could still maintain control of the board.

LONDON – Investors in Endemol, producer of Big Brother and Wipeout, are examining a scenario by which the current shareholders in the company retain control of the company after it completes a restructuring of its €2 billion debt.

In an un-sourced report, the Financial Times said that lenders including U.S. funds like Centrebridge, Apollo, Royal Bank of Scotland and Barclays, are considering swapping their debt for a majority stake in the equity of the company.

In an usual step, the paper said they are also thought to be considering leaving Endemol’s original shareholders – Goldman Sachs Capital Partners, Silvio Berlusconi’s Mediaset and John de Mol’s Cyrte Investments - in charge of the board.

The situation could change, the paper said, reporting that the restructuring was still being discussed and that negotiations about the future shape of the company would go on into the fall.

Endemol parted company with its chief executive Ynon Kreiz earlier this summer, after a difference in opinion about the company’s future direction.

Group president Marco Bassetti and finance director Just Spee were appointed by the board to manage continuing operations and the oversee the debt restructuring that was already underway.