MAY 28, 2002
Kirch "paralyzed by diverging interests"
THERE are to be meetings this week to try to reorganize unravel the complicated situation surrounding the Kirch group of companies. According to reports in The Financial Times, the creditor banks are arguing with one another to such an extent that nothing can currently be done and Kirch shareholders are worried that this will result in the complete collapse and dismemberment of the empire rather than an ordered reorganization which they had been hoping for.
It has taken several months for the administrators to work out who has rights to which bits of the empire and their reports will be presented to shareholders this week and then decisions will be taken as to how to move the company forward.
There are seven minority shareholders in the business including Prince Al-Waleed's Kingdom Holdings, Rupert Murdoch and the Italian firm Mediasat.
The reorganization is important as Kirch not only controls the Formula One group of companies but is also a major contributor to Formula One's funding.
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