Kirch is facing pressure from creditors over its €6.5bn (£4bn) debt, and is looking at increasingly desperate measures to keep itself afloat. Premiere is losing €2m a day and is set to run out of funds by September.
The group hired advisers to develop a rescue plan, which have reportedly said that Kirch's core media rights unit, KirchMedia, could survive the closure of Premiere. However, it would still have to pay about €3bn to US film studios over rights to movies that Premiere has bought from KirchMedia.
Other options being considered are selling its stake in Formula 1 racing rights holder SLEC, and selling fellow debt-ridden German media company EM.TV.
Should it fail to come to an arrangement with its creditors, Kirch Gruppe faces being broken up. Among those waiting to swoop is News Corporation chairman Rupert Murdoch, who would have the chance to get a much sought-after foothold in the German market through News Corp-owned BSkyB's stake in Premiere.
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