Thursday, August 20, 2009

SPV Board Of Creditors Give Way To Conclusion Of Contract With Sony Music Entertainment has received the following press release:
The interim board of creditors of SPV Schallplatten Produktion und Vertrieb GmbH, Hannover, in insolvency, have assigned insolvency administrator, attorney Mr. Manuel Sack, to go into final negotiations about future co-operation with Sony Music Entertainment Germany GmbH. On July, 31st 2009, the local court Hannover, Germany, had ruled for administration of insolvency of SPV Schallplatten Produktion und Vertrieb GmbH.
Founded in 1983, the company had developed to one of the biggest independent music distributors worldwide. The insolvency of one of the SPV shareholders, followed by a compensation of millions of Euros in 2007, parallel to a serious narrow market had forced founder and managing director Mr. Manfred Sch├╝tz, to file for insolvency at the local court Hannover, end of may 2009.
Together with the credit institutions being involved, the insolvency administrator have managed to sustain the daily business in all areas of operation and is now able to ensure to all business partners a long lasting solution for SPV´s future business.
After a multistage bidding procedure, the insolvency administrator have presented four binding offers to the board of creditors, all coming from well known investors from the music and entertainment business.
Focussing on the concept presented by Sony Music Entertainment Germany GmbH the creditors believe to establish a forward-looking and substantial structure, that guarantees a safe and effective satisfaction for all creditors involved. The new partner also avouches to keep various headcounts within an ongoing operating company SPV Schallplatten Produktion und Vertrieb GmbH, though in an obviously restructured setup.
All parties involved are looking forward to speed up in finalizing their ongoing negotiations and to announce more details by the end of next week.