Executives at Kirch met with bankers on Monday to try to draw up a rescue plan for the company, which is being dragged down by its loss-making pay-TV unit Premiere World, in which BSkyB holds a 22% stake.
Kirch has suggested it may be willing to sell assets, including its stake in Formula 1 racing rights holder SLEC and Premiere to raise cash.
Ironically, it was through Kirch's $1bn (£700m) rescue package of fellow German media company EM.TV -- the former owner of Muppets creator the Jim Henson Company -- that Kirch acquired its Formula 1 stake, which it may now be forced to sell in order to save itself.
Last month, the company hired three insolvency experts to develop a long-term rescue plan. If they fail to reach a deal with its creditors, which include banks such as Bayerische Landesbank, HVB and Commerzbank, Kirch could face being broken up.
This could result in Australian media mogul and News Corporation chairman Rupert Murdoch getting a much sought-after foothold in the German market through News Corp-owned BSkyB's stake in Premiere.
Kirch's financial position came under increased pressure at the weekend after German publisher Axel Springer threatened legal action unless Kirch honours an option to buy back Springer's stake in the company for €770m.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
