Senator returns shares to A Company
Latest blow for German producer-distributorCOLOGNE, Germany -- Troubled German producer-distributor Senator Entertainment has failed to keep up payments on its deal to acquire 25.2% of Eastern European licenser A Company and handed back half of its stake to A Company's founders.
According to A Company's Web site, Alexander von Dulmen and the other founders now control 74.8% of A Company, with Senator retaining a 12.6% stake. Senator signed the deal with A Company in February but could only come up with half the agreed upon capital.
This is the latest blow to Senator, which has announced a major restructuring after losing more than 10 million euros ($14.1 million) in the first half. Many analysts believe that Senator, which is low on cash and has high overhead costs, could fold before the end of the year.