DGAP-Ad hoc: Intertainment: Franchise Pictures and subsidiary companies file for bankruptcy
20.08.2004
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Intertainment: Franchise Pictures and subsidiary companies file for bankruptcy
Ismaning, near Munich, 20 August 2004 - Intertainment AG, Ismaning (Munich),
has been informed, shortly after the presentation of the final judgment in the
fraud case brought against US film producer Franchise Pictures and others,
that Franchise Pictures and nearly all subsidiary companies convicted in the
lawsuit have filed for bankruptcy. As a result of this predictable step, the
companies have placed themselves under the protection of American insolvency
law. This means that Intertainment will assert its claims against Franchise
Pictures and the subsidiary companies resulting from the lawsuit as part of
the insolvency proceedings.
It is possible that Elie Samaha, the CEO of Franchise Pictures, will also file
for personal bankruptcy. Samaha was - like Franchise Pictures and the
subsidiary companies - found guilty of defrauding Intertainment. Following the
judgment, Intertainment is entitled to receive 121.7 million dollars, with all
the convicted parties being jointly liable for 92.7 million dollars.
Regardless of this latest development, Intertainment will continue with its
preparations for the arbitral proceedings scheduled for January 2005 against
the other parties involved in the Franchise Pictures fraud. These include
Comerica Bank, and the insurance companies Film Finances and others. As part
of the proceedings, Inter-tainment is claiming - as in the case of the
Franchise lawsuit - damages in excess of 100 million dollars.
end of ad-hoc-announcement (c)DGAP 20.08.2004
Issuer's information/explanatory remarks concerning this ad-hoc-announcement:
Contact:
Intertainment AG, Investor Relations, Osterfeldstrasse 84, 85737 Ismaning,
Germany;
Telephone: +49 (0)89 21699-0, Fax: +49 (0)89 21699-11,
Internet:
http://www.intertainment.de , E-Mail:
investor@intertainment.de
