Endemol restructures debt

LONDON — Global TV production company Endemol has concurred a plan to restructure its €2 billion ($2.6 billion) debt burden.The company, whose ideal -known show remains “Big Brother,” described the move as “an important milestone.” Endemol stated that it had reached an agreement in principle with more than two-thirds of its lenders on restructuring its finances.Under the deal, it is believed the debt will be cut to about €500 million ($644 million). Endemol’s three shareholders — Silvio Berlusconi’s Mediaset, Goldman Sach’s Capital Partners and the outfit’s co-founder John de Mol’s investment car Cyrte — are expected to relinquish control, with their combined stake reduced to below 50%. The three will keep their seats on the board, but be joined by representatives of the lenders.Marco Bassetti, global president of Endemol, said: “We are delighted that the majority of our lenders have in principle concurred to the proposed commercial restructuring terms, and we can now enter into the final part of the process.” Endemol added that over the next few weeks speaks with lenders — which include Apollo Management, Centrebridge, Providence Equity Partners, Barclays, RBS and the Lehman Brothers estate — will continue to “finalise documents for the legal implementation of a successful restructuring.”Bassetti said, “Without the constraints of an onerous capital structure, we will be able to pursue exciting growth initiatives and build upon the solid progress that the group has made in 2011.”Provided there are no legal obstacles, the restructuring should draw a line under what has been a tense time for the producer, without a CEO since Ynon Kreiz ankled last summer. Endemol stated that it had outperformed its own internal budgets by about 10% last year. As speaks proceeded over the company’s precarious financial position, Endemol sought interest from potential buyers. These included Time Warner, and reportedly U.K. terrestrial web ITV. There is speculation that RTL, owner of Endemol’s chief rival FremantleMedia, could be interested in buying the company once the restructuring is complete.

Contact the Variety newsroom at news@variety.com

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Submited at Thursday, January 19th, 2012 at 1:00 pm on Television by froskey
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