Optimistic warns creditors over repayment

Analoguesat

Published: May 28, 2006
Print Email

Optimistic Entertainment has warned that it may not be able to repay creditors of its ailing channels business The Optimistic Network.

The company – which runs the QuizNation and have produced Play Sudoku for ITV2 – has written to creditors warning them The Optimistic Network has been hit by a "significant reduction" in revenues.

Optimistic said the slump was partly due to QuizNation being moved from the entertainment section of the Sky electronic programme guide to the gaming and dating section, but was also due to the proliferation of quiz TV channels.

The board of The Optimistic Network has put together a proposal to creditors that would see their debts either partially repaid, or settled by swapping the debt for equity in parent company Optimistic Entertainment. Creditors will vote on the offer on 8 June.

In addition, chairman Jasper Smith has said that a debt owed by The Optimistic Network to the parent company will take second place to the rights of creditors, and the parent company is seeking bank funding personally underwritten by Smith.

Smith wrote to creditors this week, telling them that The Optimistic Network had cut its operating expenses and, while still running quiz channels, its assets would be focused on supporting the TV production arm Optimistic Media.

SOURCE: Quiztelly.com / BROADCAST