Page 147 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

147
FINANCIAL STATEMENTS AND MANAGEMENT. ANNUAL CORPORATE GOVERNANCE REPORT. BALANCE SHEETS 2012
In 2010, Mediaset España Comunicación, S.A., based on the outcome of the impairment test carried out, wrote down
the value of the stake in Edam Acquisition Holding, Coop. to zero.
In 2011, the Edam Group entered into negotiations with its bank creditors for a potential debt restructuring as it was
unable to meet the financial covenants of the syndicated loan granted in 2007 for the acquisition of Endemol.A qualified
majority of credits agreed to grant waivers, extending the terms so the June 2011 covenants would not be missed and
to help the negotiation of the debt restructuring, led by senior debt creditors.
Judging by recent developments in this process near year end 2011 (e.g. the creditors’ agreement signed which entails
the allocation of the Group to senior bondholders or its sale to third parties) and its outlook based on the agreements
made once the need for restructuring was decided, the Company’s directors reversed the debit balance of the “Recycla-
ble reserves in associates” arising from movements recognized directly in Endemol’s consolidated reserves.This resulted
in a loss in the income statement, but did not have any overall effect on the Group’s equity.
Therefore, the investment in EdamAcquisition Holding, Coop. was transferred in 2011 from“Equity method investments”
to “Other financial assets.”
The breakdown by company of investments accounted for by the equity method is as follows:
Company
Investments accounted for
using the equity method
Results of companies accounted
for using the equity method
2012 2011 2012 2011
Pegaso Television, Inc. 3,540 3,540 - -
Producciones Mandarina, S.L. 1,402 1,876 454 1,327
La Fábrica de la Tele, S.L. 3,560 3,367 1,632 1,866
BigBang, S.L. 732 871 103 484
DTS Distribuidora de Tv Digital, S.A. (*) 457,829 473,433 4,331 3,783
60 DB Entertainment 447 - (53) -
Editora Digital de Medios 433 - (67) -
Furia de Titanes A.I.E. - - 2,052 -
Total 467,943 483,087 8,452 7,460
Impact of Edam’s removal from the
consolidation scope (30,415)
8,452 (22,955)
(*) Audited by Deloitte