Unable to pay its debts, an insolvency court in Munich, Germany, has placed children’s entertainment company TV-Loonland AG in preliminary administration.
The move comes after shareholders twice refused to approve share consolidation plans that would have raised the cash necessary for the company’s debt payments.
Under the ruling, an attorney at law has been appointed as preliminary administrator of the company and Michael Briem leaves the company’s advisory board to become CEO.
In a statement from the company, which produces such animated series as The Little Princess, Briem is said to believe that its assets are more valuable than its debt and will work with the preliminary administrator to maximize their value.
According to Variety, the company has been trying for the past year to restructure its operations and deal with litigation from former CEO Selma Kaeppel, who was convicted of fraud.