Luminar's 49%-owned 3DE in administration

Nightclub group Luminar's 49%-owned 3D Entertainment Group has been placed in administration.

Luminar - which also had a loan investment in 3D - said it understood that the majority of the business assets had subsequently been acquired by Sun European Partners.

Luminar said the overall value of the equity and investment on its balance sheet in August was 17.3m, and there was a trading debt for services provided to 3DE of approximately 0.8m.

It said the proceeds of the administration are likely to provide only a minimum return to Luminar.

But in due course the proceeds are expected to cover the bank loan guarantee of 2m which Luminar provided to 3DE in July 2009.

Posted at 07:41PM Mar 01, 2010 by Kelly Board in Insolvency  |  Comments[0]

Reader's Digest 'Opitmistic' of Finding Buyer

The Administrators of magazine Reader’s Digest have said they have received ‘significant interest’ from potential buyers of the world renowned magazine.

They have also confirmed that the magazine will continue to be published until at least April whilst a buyer is sought.  The 72 year old British edition of the magazine entered into Administration in February.

According to Administrator Philip Sykes, negotiation have already begun with a potential investor and he has said he is ‘reasonably optimistic’ about a deal going through.

The UK edition was forced into Administration following a withdrawal of support from their US parent company, this was enforced following a dispute over a pension fund crisis in that company. A deal to try and secure new regulatory backing on the pension fund also fell through before they were placed into Administration.

The sales team for the Reader’s Digest Association (RDA) are also marketing advertising space for various media company in their May edition.  The Administrators have also said that future campaigns are going to be reviewed, however the popular prize draws are going to continue.

Reader’s Digest has a circulation of over 450,000 throughout the UK, and their offices in London and Swindon employ 117 people.

RDA, the US parent company entered American bankruptcy protection proceedings last year after struggling with interest payment on their crippling $2.2bn debts.

However, they still continue to have editions published in 50 countries, and have offices based in 44 of those.

Posted at 11:01AM Mar 01, 2010 by Marc Stenton in Insolvency  |  Comments[0]