The Spanish animation firm behind the hit preschool series Pocoyo and the majority shareholder in UK distributor Cake has filed for pre-bankruptcy protection.
Madrid-based Zinkia Entertainment made the application after telling the Spanish stock market regulator on Thursday it is having difficulties repaying its debts.
Pocoyo follows the adventures of a three-year-old boy and his animal friends and has been has sold to 150 broadcasters around the world, including Nick Jr in the US and the UK.
Three seasons and 156 episodes have been produced, while 10 apps based on the property have been downloaded seven million times in total, according to Zinkia.
Zinkia also owns a 51% stake in UK distributor Cake, having taken a majority share in the company in 2011. The distributor’s MD, Ed Galton, told C21 the Spanish company’s financial troubles had “no impact” on Cake’s business.
Zinkia succeeded in becoming the first firm to join Spain’s alternative stock market, the Mercado Alternativo Bursatil for Growth Companies (MAB) in 2009.
Founded in 2000, the company has almost US$15m (€11m) of net debts, while its revenue fell by over half in the first half of 2013 compared to last year, according to the Financial Times.