Global producer-distributor Endemol Group has reached “an important milestone” in its ongoing efforts to restructure its debt, reaching an agreement in principle with more than two-thirds of its lenders.
The company said today that “a significant majority” of its lenders had reached a deal regarding the restructuring of the group’s capital structure. It is understood the agreement will see Endemol’s €2 billion (US$2.58 billion) debt load reduced to about €500 million.
In the coming weeks, Endemol and its lenders will continue discussions and work towards finalizing documents for the legal implementation of a successful restructuring.
In a joint statement on behalf of Endemol’s management board, global president Marco Bassetti and chief financial officer Just Spee said: “We are delighted that the majority of our lenders have in principle agreed to the proposed commercial restructuring terms and we can now enter into the final part of the process. A solution that puts Endemol on a strong financial footing for the future is now imminent.
“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.”
Endemol said its business has continued to make significant progress over the past 12 months, with year-on-year growth of approximately 10%, thanks in part to the performance of formats such as The Money Drop and Big Brother.