C21 MEDIA reports that U.K. global entertainment media company Entertainment Rights is in advanced negotiations with bidders to sell the company's subsidiaries and assets.
After exploring several options, ER's board is looking seriously at selling. "The board has received offers for the company's subsidiaries or business and assets and is in advanced negotiations with a number of bidders who have substantially completed their due diligence in order to complete a transaction imminently," ER said in a statement. "The offers received are at a level that would be acceptable to the board and to the group's lender, but at which there is no prospect of recovering all of the outstanding debt."
Potential buyers include U.K.-based Chorion, U.S.-based Hit Ent. and Italian media giant De Agostini. ER owns a global portfolio that includes CASPER THE FRIENDLY GHOST, THE LONE RANGER, RUDOLPH THE RED-NOSED REINDEER, HE-MAN AND THE MASTERS OF THE UNIVERSE and SHE-RA and added that it is no longer taking offers.
ER's lenders have extended short-term financing and will continue to support the company after February 28 so a sale or restructuring can occur. With debts of about $188 million, ER recently announced job cuts, an asset sale and a restructuring of management, including chairman Rod Bransgrove departing. His replacement will be deputy chairman Robin Millar.
