Last-ditch efforts to save Greece’s private Mega channel from bankruptcy paid off on Wednesday with an agreement between shareholders reached at the eleventh hour. Shareholders reportedly agreed to put up three million euros within a week so as to cover outstanding debts, including money owed to employees who haven’t been paid their wages for two months.
The money will be taken from a share capital increase worth 22.7 million euros. The management of Tiletipos announced that all investors would participate in the share capital increase, as well as other interested parties.
The board meeting to decide on the private channel’s future ran for three stressful hours on Wednesday. The channel’s basic shareholders are members of three large families: Bobolas, Vardinoyiannis and Psycharis. They decided to accept a proposal submitted by Theoharis Filipopoulos who suggested the share capital increase.
Old shareholders weighed the pros and cons and decided that they couldn’t let the historic channel shut down. Furthermore, bankruptcy would have caused additional problems to credit institutions.
Filipopoulos proposal includes a reduction in the company’s interest rates and a restructuring of loans.
How much does Mega owe?
The channel’s bank loans are estimated at 116 million euros. In December, 2015, a ray of hope was given when banks agreed to extend their return to 2021. In exchange, Tiletipos was to have proceeded with a share capital increase worth 15 million euros. This never happened.
95 million euros of the bonds are owed to Alpha and Piraeus banks. Other short-term loans are worth 27.1 million euros with 13.7 million euros of these owed to Piraeus Bank and 13.4 million euros owed to Alpha Bank.
Mega Channel was created in November 1989 to become the first private channel of Greece. Mega Cosmos is the international network of the channel that broadcasts the “best of Mega” to Greeks abroad in North America, Africa, Asia and Australia.