Debts affect future of Postman Pat

[TrueBlueTerrier]

http://www.google.com/hostednews/ukpres ... LPxOI1422g" onclick="window.open(this.href);return false;

There were concerns over the future of Postman Pat owner Entertainment Rights after the firm's main lender was said to have called in a restructuring specialist.

Bank HBOS has hired Deloitte due to fears over the firm's high debt levels and falling share price, the Sunday Telegraph said.

Entertainment Rights - which also owns the rights to other characters such as Lassie - is in takeover talks as it looks to secure a cash injection.

HBOS recently pumped in £13 million to ward off "potential cash flow shortfalls" until the end of February, but the firm traded "significantly below expectations" over Christmas.

Entertainment's early talks with potential buyers such as Cookie Jar Entertainment and BKN International have also failed to fetch a high enough price, the report said.

The group has debts of around £125 million and has seen its market valuation collapse from £267 million in March 2007 to just £4.4 million.

Entertainment Rights - which axed a third of its 150 staff in December - is among a number of firms that have been hit by the collapse of high street chain Woolworths.

It said it would be around £800,000 out of pocket after Woolworths' CD and DVD distribution business, Entertainment UK was put into administration.

The firm was a key distributor for the DVDs and other merchandise produced by the firm based on its TV characters.

Entertainment Rights declined to comment on the report, while HBOS and Deloitte were unavailable for comment.

[Thorby Bislam]

So, it's art imitating life.

[stokes11eg]

So, it's art imitating life.

Yip, just sell out to T.N.T.

[DGP1]

So, it's art imitating life.

Yip, just sell out to T.N.T.

[DGP1]

pattnt-crop.jpg

I'll clean it up later on but until then