According to sources close to negotiations, Kirch has offered minority stakes in its core broadcasting and sports rights divisions to its main creditors in exchange for extending vital loans to the company. Kirch has come under increasing pressure from its creditors to pay back some of its loans amid growing concern that the media group may go under.
Should the strategic plan put forward by Kirch be accepted by its investors then it could enable the company to retain its controlling stake in Formula One which it has previously put up for sale in a bid to stave off bankruptcy.
Sources close to the group stated that Kirch had offered four of its main creditors equity stakes in KirchMedia - the group's sports rights division - as security in exchange for fresh loans totalling between $441million (EUR501.48m) and $706m (EUR802.82m).
Other options reportedly being considered by Kirch include the sale of its loss-making German Pay-TV platform Premiere World - the firm's biggest single asset.
Beleaguered German media firm the Kirch Group has reportedly come up with an assets swap plan which could see it retain its lucrative Formula One TV rights as it comes under increasing pressure from its array of creditors.
