A series of ‘hidden liabilities’ scuppered rescue plans made by investors to save the Kirch media group from insolvency according to press reports.
Investors including Rupert Murdoch and Silvio Berlusconi withdrew offers of funding following the emergence of hidden liabilities – most notably an E150+ arrangement with Leo Kirch’s son Thomas – within the group’s accounts.
The collapse of talks between Kirch group, investors and banks last week led to Kirch filing an insolvency order with the German courts (see KirchMedia Files For Bankruptcy Signalling The Demise Of The Kirch Empire).
