Two Rivers exits Kew Media Group

UK prodco Two Rivers Media has bought back the stake in the company previously held by troubled Kew Media Group (KMG) as the latter faces being de-listed from the Toronto Stock Exchange.

Rob Woodward

Two Rivers was set up by Alan Clements, the former MD of Scotland’s STV Productions, a year ago with backing from KMG, UK broadcaster Channel 4 and Scottish media bank Noble Grossart.

Channel 4 and Noble Grossart have funded the buy-out of KMG’s stake and increased their shares in the Glasgow-based company as a result. Financial details of the arrangement were not disclosed.

It comes as KMG continues a strategic review that could result in the sale of the company or a merger with another party, with a buy-out by private equity investors looking likely. KMG would subsequently have to de-list from the stock exchange.

This followed KMG defaulting on its credit facility after certain reports provided by Geoff Webb, the company’s former chief financial officer, to the company and its senior lenders contained inaccurate information regarding working capital.

KMG’s future on the Toronto Stock Exchange is now in doubt after the latter notified KMG it is reviewing its eligibility for continued listing on the exchange in relation to “disclosure issues.”

The company has been granted 120 days to comply with all requirements for continued listing by the exchange.

Two Rivers’ exit from KMG comes after Dance Moms executive producer Jeff Collins, whose prodco Collins Avenue Entertainment became part of KMG in 2017, left the company earlier this month.

Two Rivers chairman Rob Woodward said: “The buy-out of Kew’s interest is by mutual agreement. They have been a strong partner for the company and we wish to thank them for their support. It is an exciting time for Two Rivers, so we are delighted that Noble Grossart Investments and Channel 4 are increasing their interests in the company.”

The firm is currently developing a number of series for national broadcasters in the UK and recently coproduced Susan Hill’s Ghost Story for Viacom-owned Channel 5 with KMG-backed Awesome Media & Entertainment.

With primary offices in London, LA, New York, Sydney and Toronto, KMG companies develop, produce and distribute more than 2,000 new hours of content every year, as well as manage a library of more than 14,000 hours.