Troubled sports promoter given bankruptcy reprieve
The troubled Swiss sports marketing company, ISMM, which is selling the media rights to the next two football World Cup competitions, has won a reprieve from bankruptcy.
ISMM said a court in canton Zug had granted an appeal to hold off bankruptcy proceedings for one month to allow it to complete its sale to the French media company, Vivendi.
The company had requested a three-month stay.
“Subject to certain conditions… Group Canal+ SA, a fully owned subsidiary of Vivendi Universal, will conclude the purchase of the ISMM Group,” a statement from the company said.
ISMM – or International Sports Media and Marketing – is expected to carry out financial restructuring before the sale goes through.
The Zug-based company filed for bankruptcy in March, but asked the court to stay the order. The court refused, but ISMM immediately appealed.
The group, which holds television rights to the 2002 and 2006 World Cups, collapsed after a series of bad investments in tennis, motor racing and football events.
It owes football’s European governing body, Uefa, SFr20 million ($11.5 million) in marketing fees for last year’s European Championships.
It said it was now in talks with Vivendi regarding a “total resumption” of its activities.
The world football governing body, Fifa, said last month that if ISMM went bankrupt, World Cup television rights would be offered to Germany’s Kirch group.
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