KIT Digital, a provider of video management and software solutions, has announced that it is to file for bankruptcy after agreeing for a reorganisation of the company with three of the company’s largest shareholders. The company will then regroup the various companies – Ioko 365, Polymedia, Kewego, Multicast and Megahertz – into a new company called ‘Piksel’.
In a statement on the reorganisation, the company said:
This is anticipated to include, among other things, a recapitalization of the Company fully backstopped by the Plan Sponsor Group, an opportunity for all existing shareholders to participate in the recapitalization, and the regrouping of the core operating entities into a newly formed group entity called Piksel. Through the Plan, the Company expects to be in a position to pay all vendors, suppliers and other holders of valid pre-petition claims.
The statement also said that only the parent holding company, KIT Digital will file for bankruptcy, but the group’s profitable operating subsidiaries, including Ioko 365, Polymedia, Kewego, Multicast and Megahertz will not be affected.
Peter Heiland, Interim Chief Executive Officer, said:
“The Plan provides certainty and comfort to our customers and employees and it will allow the reorganized company to aggressively pursue growth opportunities with confidence,” said “By moving the core businesses forward together unburdened by the issues currently plaguing the corporate parent, our customers and products can once again become the sole focus of this exciting business.”
What Does Kit Digital Do?
Kit Digital tend not to move in advertising circles very often as their main focus in on video management and delivery, but their OVP and OTT platform products, Cloud and Cosmos, are commonly used by broadcasters and brands to make the shift from from traditional broadcast to ‘multiscreen broadband TV’.
In spite of the ban
The company say they have nearly 2,500 clients in over 50 countries, including Airbus, The Associated Press, AT&T, BBC, BSkyB, Disney-ABC, Google, HP, MTV, News Corp, Sky Deutschland, Sky Italia, Telefonica, Universal Studios, Verizon, Vodafone VRT and Volkswagen.