The Board of The Tinopolis Group (“Tinopolis”), the international TV production and distribution group with businesses based in the UK and US, is pleased to announce a significant restructuring and recapitalisation that will set it on a path to renewed growth after a challenging year as a direct result of the global Covid-19 pandemic.
In line with the rest of the global media industry, Tinopolis has been adversely affected by the pandemic, not least in its ability to complete productions amid physical restrictions since Q2 2020. The closure or postponement of sporting events during the first lockdown damaged the Group’s cash generation and working capital. In addition, the extreme Covid outbreak and severe local regulations in California slowed or stopped our operations in the USA. Nonetheless, the business has been making good progress in its recovery since Q4 2020, helped by the return of professional sport and the re-engineering of some our most popular shows to be COVID compliant.
Throughout these difficult months Tinopolis was sustained by the consistent support of its staff, its customers and its lenders. To all of these we are extremely grateful. Our banks and institutional funders have now committed to invest significant new funds to enable the group to restore its trading to pre-pandemic levels. In addition, the management team has provided significant new investment. A majority holding in the continuing business will therefore be sold to a new company owned by these management investors.
As part of the wider restructuring, a non-trading group company in which Loan Notes owned by current and former management are held, will be closed and enter liquidation. No staff, customers, suppliers or creditors to the various group trading companies are affected by this process.
Commenting on the restructuring and recapitalisation, Ron Jones, Chairman of Tinopolis, said:
“Tinopolis now enters an exciting new phase and is well placed to resume its growth path as the global media industry adjust to life after Covid. The damage caused by COVID has been significant and a complete recovery will not be easy. However, our underlying business has shown considerable resilience in the last 12 months and is now on a sound footing. Equally, our relationships with key commercial partners have remained strong during a difficult time and we value their continued support.
“Tinopolis has an encouraging pipeline of projects and new contracts. The management team is committed, personally invested and incentivised to continue building a world-class production and distribution business in the UK and US, so we look forward to working with our talented staff to return the group to its former success and beyond.”