Canadian group faces “imminent” administration

line of duty vicky mcclure

Line Of Duty: World Productions’ drama is distributed by Kew Media Distribution

Kew Media Group (KMG) is on the brink of administration as a North American bank took control of the firm and demanded it settle its £60m-plus debt within 10 days.

A source close to situation suggested administration is “imminent” and Broadcast understands that staff in London were informed this afternoon a majority of jobs had been made redundant. This will immediately affect a minimum of 30 staff.

According to a statement issued to KMG investors, Truist Bank has become the embattled firm’s senior creditor and brought forward the repayment date of KMG senior credit facilities – the collective term for KMG’s bonds and notes. 

The bank has “demanded repayment of all amounts” owed by KMG and issued an insolvency notice should KMG fail to do so by 9 March.

KMG is considered unlikely to be able to settle its debts, and several sources have said administration – known in Canada as a CTAA – could potentially happen as soon as Monday.

Broadcast understands that other eventualities are possible, though administration is the most likely outcome.

Indies and lenders scrambling to regain rights that London-based Kew Media Distribution (KMD) currently controls now face the prospect of their shows being sold at auction. Those chasing royalties are unlikely to recoup their money.

However, certain KMG-owned companies can still search for a buyer independently or complete their own buyout.

Financial irregularities

KMG’s woes first emerged in December when it revealed financial irregularities filed by then-chief financial officer Geoff Webb. The company’s share price has collapsed and the company was given a permanent cease trading order a month ago.

Peter Sussman and Steven Silver launched KMG in 2017 after acquiring Content Media (now KMD) and six Canadian production companies using an investment vehicle at a combined cost of C$104.1m (£60.3m).

Subsequent investments were made in companies such as UK producers Two Rivers Media and Awesome Media & Entertainment and distributor TCB Media Rights. Broadcast understands TCB is attempting to buy back ownership, and may partner with another investor to complete a deal.

It is understood that KMD, which was a profitable subsidiary of KMG, is unable to repay its creditors as it does not have control over its finances.

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