TORONTO--(BUSINESS WIRE)--KEW MEDIA GROUP INC. (“KEW” or the “Company”) (TSX: KEW and KEW.WT) today announced that pursuant to an order of the Ontario Superior Court, FTI Consulting Canada Inc. (the “Receiver”) has been appointed as receiver of the assets, undertakings and properties of Kew Media Group Inc. and Kew Media International (Canada) Inc. The Receiver will manage the affairs of the Company and seek to sell all of the assets of KEW and distribute the proceeds thereof to KEW’s creditors. All of KEW’s directors resigned concurrently with the appointment of the Receiver.
In addition, KEW announced that its subsidiaries, Kew Media International Limited, Kew Media Group UK Limited and Kew Media Group UK Holdings Limited (together, the “Subsidiaries”), were each placed into administration in England and Wales. Simon Ian Kirkhope and Andrew Johnson of FTI Consulting LLP have been appointed as the joint administrators (“Joint Administrators”) of the Subsidiaries.
Administration is a formal insolvency proceeding pursuant to the laws of England and Wales, the objectives of which are to: (i) rescue the company as a going concern; (ii) achieve a better result for the company’s creditors as a whole than would be likely if the company were wound up without first being in administration; or (iii) realize property to make a distribution to one or more secured or preferential creditors. Each company in administration benefits from a statutory moratorium that prohibits a wide range of enforcement action without consent of the administrator or leave of the English court. The administrators are required to provide the creditors of the company in administration, its member(s) and the registrar of companies in England and Wales with their proposals for achieving the purpose of the administration, as soon as practicable, and in any event within eight weeks of the commencement of the administration.
None of Kew’s production companies are subject to the receivership or UK administration.