Romania’s Prima TV enters insolvency

Prima TV, a commercial TV channel owned by Romanian businessman Cristian Burci, entered insolvency after the Bucharest Court admitted the application for opening the procedure against the debtor. The court also appointed SMDA Insolvency SPRL as judicial administrator, reports local Mediafax. Prima Broadcasting Group SRL, the company that owns the audio-visual license of Prima TV, filed the insolvency request on August 6. Romanian oil and gas group OMV Petrom also filed a request for the company's insolvency in late July, but the Bucharest Court scheduled the hearing for November, according to Romanian media. OMV Petrom is one of the company's creditors. Prima Broadcasting Group SRL had over EUR 14.4 million worth of debt at the end of 2014, down from almost EUR 19 million, at the end of 2013. The company's turnover went down by 37% in 2014 compared to 2013, to EUR 9.75 million, according to official data from the Finance Ministry. However, it made a net profit of EUR 2.27 million, compared to EUR 9.45 million losses in the previous year. The company reduced its number of employees by half, to 162. Graffiti Red SRL is the sole associate of prima Broadcasting Group SRL. Graffiti Red’s shareholders are Graffiti Marketing and Multimedia Holding SA - 95%, and Diana Tobosaru - 5%. Cristian Burci is the sole associate of Graffiti Marketing and Multimedia Holding, according to the website of the National Audiovisual Council. Burci took over Prima TV from German media group ProSiebenSat.1 in late 2013. At that time, ProSiebenSat.1also sold Kiss TV television, and Kiss FM, Magic FM, One FM, and Rock FM radio stations to Greek Antenna Group. PRO TV’s parent company records lower revenues in Romania Irina Popescu, irina.popescu@romania-insider.com