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Dutch TV Firm Endemol Says Has Deal With Most Creditors
January 19, 2012

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The Hague. Dutch TV producer Endemol, creator of “Big Brother” and other hits, said on Thursday it had outlined an agreement with most of its creditors to restructure debts of more than two billion euros.

“A significant majority, representing more than two-thirds of lenders, have reached agreement in principle regarding a restructuring of the Group’s capital structure,” said a company statement.

“In the coming weeks, the company and its lenders will continue discussions and work towards finalizing documents for the legal implementation of a successful restructuring,” the statement added.

The Amsterdam-based company has been in talks with its banks for several months to restructure its more than two billion euro ($2.5 billion) debt.

The company pioneered reality television shows such as Big Brother and StarAcademy, which have become international franchises.

A report last December in Italian business daily Il Sole 24 Ore said a number of the company’s creditors had plans to take it over and sell it, but that the offer was judged too low.

An earlier offer by US media giant Time Warner of around 1.0 billion euros was also rejected. Endemol refused to confirm that information but later said Time Warner made a revised offer.

Endemol is controlled by Mediaset, Wall Street giant Goldman Sachs and Cyrte Investments, an investment fund belonging to Endemol’s founder John De Mol.

Each of the partners holds 33 percent of the Dutch company.

“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 as we focus on and develop the creative strategy which lies at the heart of our business,” said the company statement.

Endemol France’s chief executive Virginie Calmels said last month that the company planned to resume its strategy of acquiring other production companies once a deal with creditors is reached.

Agence France-Presse