Kew Media Group’s lenders have called in the Canadian TV producer-distributor’s debts, pushing the company closer to the brink of collapse after it was delisted from the Toronto Stock Exchange last month.
In a statement issued to Kew Media Group’s investors on Friday, the company said Truist Bank has “demanded repayment of all amounts owing under the senior credit facilities,” adding that the bank intends to enforce its security under Canada’s Bankruptcy and Insolvency Act. The company’s net debt stood $117M, according to its most recent earnings.
“Following a 10-day notice period, Kew’s senior lenders may take steps to enforce on their security,” the statement added. It is the latest chapter in a disastrous downward spiral for the company after it defaulted on its credit facility last year because it filed “inaccurate” financial information.
Kew Media Group’s subsidiary, the once-thriving British sales house Kew Media Distribution, is also staring down the barrel of a winding-up order, with a court hearing set for next week. Producers including, Leaving Neverland indie Amos Pictures, are fighting to claw back the royalties they are owed from the international sales of their shows.
Other Kew Media Group subsidiaries have also been fleeing the sinking ship. The latest was Frantic Films today after CEO Jamie Brown bought back the company, which makes HGTV’s Backyard Builds. Others who have left the group include UK producer Two Rivers Media, while Dance Moms executive producer Jeff Collins left Kew-backed Collins Avenue Entertainment in January.
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