The German media giant is on the verge of collapse and is being threatened from several sides. It has debts of around £3.75bn and is coming under increasing pressure from its creditors to pay back around £1.5bn.
This includes £1bn to News Corporation chairman Rupert Murdoch for his 22% stake in ailing pay-TV business Premiere and £280m to Dresdner Bank, which recently extended Kirch's loan terms until April.
The German government is worried that if it does not sell some of its assets quickly, Rupert Murdoch's News Corporation will swoop and launch a takeover bid.
Last week, Kirch came under further pressure from Axel Springer, which has been pressing an option that could force Kirch to pay out £462m it does not have.
Kirch has been in talks with Springer for weeks about delaying the option on the publisher's 11.5% stake in Kirch's terrestrial TV station ProSiebenSat1.
Fending off Springer and its option is crucial to Kirch because of its debts and creditor pressure.
The extent of Kirch's financial difficulties first surfaced in October when Murdoch indicated he was unhappy with Premiere's performance and might exercise a put option, forcing Kirch to buy back his stake.
However, Kirch's debt would have meant it was unable to pay Murdoch back, and speculation mounted that Murdoch might be considering a takeover of the company.
Murdoch and Leo Kirch, chairman of the group, are understood to have been in talks recently about the future of Premiere.
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