In April 2018, NorthCapital entered into an agreement to acquire Starz GmbH incl. its subsidiaries in Tunisia, Poland and China. The Starz Group was in bankruptcy proceedings and the agreement was concluded with the bankruptcy estate represented by White & Case.
NorthCapital had only had the possibility to perform a limited due diligence prior to the purchase, and soon disagreements over the state of the assets and the purchase price evolved.
These circumstances combined with other issues in the Starz group, which had not been properly disclosed to NorthCapital at the time of the agreement, resulted in a dispute with the bankruptcy estate concerning the agreement and the price.
The bankruptcy estate withdrew from the agreement and chose to sell parts of the group to another party.
NorthCapital wanted to pursue a different strategy. The dispute(s) unfortunately resulted in job losses locally in Germany.
A legal dispute is pending and the bankruptcy estate has chosen to disclose to the media details of the dispute, which has had a negative effect for employees, previous management and NorthCapital.
NorthCapital still wants to take over certain parts of the former Starz. Whether this will succeed is currently uncertain.