Mediapro’s creditors have given their support to Searchlight Capital and Invesco’s plans to inject fresh funds into the beleaguered company, the first step in what could lead to a takeover.
According to Bloomberg, the two companies have been given the go-ahead to provide Mediapro with a €60 million loan as well as slightly change the corporate structure of the group.
Mediapro’s creditors also gave the two companies their backing on a restructure plan that would allow them to take control of the business while cancelling part of the debt. Negotiations over the deal are said to be still on-going.
Bloomberg cites a letter sent to Mediapro’s creditors earlier this week that said Searchlight will provide 65 per cent of the new funds and Invesco the remainder. The firm said it “may require additional funding to continue to operate as a going concern.”
Mediapro is currently unable to meet the payments on a €920 million loan it originally secured in 2018, it was due to make a payment of €26 million at the end of June.