EM.TV Says US Banks Agree to Take Over F1 Stake
Ailing German media firm EM.TV & Merchandising said on Thursday US banks Lehman Brothers and J.P. Morgan had agreed to take over EM.TV's stake in Formula One motor racing together with BayernLB.
Ailing German media firm EM.TV & Merchandising said on Thursday US banks Lehman Brothers and J.P. Morgan had agreed to take over EM.TV's stake in Formula One motor racing together with BayernLB.
The two banks join a settlement between EM.TV and BayernLB agreed two months ago, EM.TV said. Under the deal, the banks take over EM.TV's 16.7 percent stake for 8.5 million euros ($9.3 million) in exchange for dropping legal measures.
The deal also settles ownership concerns that have complicated the banks' attempts to find a new agreement with car companies that have threatened to found their own racing series.
The Formula One business used to be controlled by insolvent media mogul Leo Kirch. EM.TV was forced to pledge its current stake to Kirch's banks when Kirch bailed out EM.TV in 2001, a year before its own insolvency.
EM.TV and the banks met in a Jersey court when the banks called in its collateral last year. EM.TV said all legal proceedings would be terminated once the settlement is closed in two weeks.
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