Entertainment Rights plc (In Administration)
('Entertainment Rights or the Company')
Appointment of Administrators, sale of UK and US subsidiaries, suspension of shares and cancellation of listing
The Board of Entertainment Rights has explored a broad range of strategic options over the past six months including the possibility of restructuring or refinancing the Company’s debt, raising new equity and a sale of all or parts of the business of the Entertainment Rights group of companies (the “Group”). Despite the financial support of the Group's lender through this period, the Group has been unable to achieve a solvent restructuring of the Company. Accordingly, the directors of the Company have appointed today as Joint Administrators, pursuant to paragraph 22 of Schedule B1 to the Insolvency Act 1986, Nicholas Guy Edwards and Carlton Malcolm Siddle of Deloitte LLP (the “Joint Administrators”) with immediate effect.
Entertainment Rights’ principal UK and US trading subsidiaries are not in administration and continue to trade as normal. Immediately following the appointment of the Joint Administrators, the Company (acting by its Joint Administrators) sold the shares in the principal UK and US trading subsidiaries to Boomerang Media, a company backed by the Chicago based private equity group GTCR and managed by Eric Ellenbogen and John Engelman for a consideration which, as indicated in the announcement dated 26 February 2009, will not result in any return to shareholders.
The sale secures the ongoing activities of the group’s trading subsidiaries, allowing the former businesses of Entertainment Rights to survive under new ownership. The new owners have indicated their intention to invest in the business to further develop its strong portfolio of intellectual property.
Application will be made on 1 April 2009 by the Joint Administrators, on behalf of the Company, to the UKLA and the London Stock Exchange to suspend the shares and cancel the listing of Entertainment Rights plc's shares on the London Stock Exchange. It is anticipated that the cancellation of the listing will take effect on 2 April 2009.
Entertainment Rights Plc and Entertainment Rights Overseas Holding Limited - In Administration (together “the Companies”)
The affairs, business and property of the Companies are currently managed by N G Edwards and C M Siddle as Joint Administrators. Both N G Edwards and C M Siddle are appointment taking Partners and authorised by The Institute of Chartered Accountants in England and Wales. The Administrators act only as agents of the Companies and contract without personal liability.
ENQUIRIES:
Jo Ouvry: 020 7303 4820, or
Vimala Camadoo: 020 7007 5098
For enquiries regarding Boomerang Media, please contact Sommer Hixson:
+1 (212) 659-1993
