BMG assets to be foreclosed

William Avery, publisher of Business Media Group, exclusively told Business Standard that the debt to the state was an older one, payable in installments.

“This is an older debt, of some €800,000, which the company owes the state. Of this, we have paid €500,000. Following its accession to the European Union, the Romanian state became less permissive in terms of debt payment, and this is why we are obliged to pay the rest of the debt faster,” added Avery.

Among assets being put up for auction by the Public Finance Administration of Bucharest Sector 4 are computers, laptops, printers, telephone switchboards, mobile telephones, air conditioners, furniture, televisions, and video systems, at a starting price of some €30,000. Avery said that BMG is amenable to the idea of an auction, one of the steps stipulated by law, due to the accumulated debt to the state budget, which the company intends to pay back in full.

As concerns the possible acquisition of BMG by a larger media group, a possibility that has been mentioned often in the past few months, Avery indicated that the Business Media Group is negotiating with several investors, both investment funds and local publishers. “We will most likely make an official announcement on a final decision sometime this summer,” added the publisher. According to market sources, the group’s shareholders have been negotiating the sale of the BMG trust for some three years. BMG is presently one of the few independent publishers on the Romanian market.

The press group (BMG) issues several publications whose circulation is unaudited by the Romanian Audit Bureau of Circulation (BRAT), including the Romanian edition of Business Week, and magazines such as Business Review, Biz, Campaign or Stuff. Another significant source of income for the company is the organizing of events, the best-known being Zilele Biz [BizDays].

The Business Media group shareholders are Rachad El Jisr (35 percent), William Avery (35 percent), and Ghandour Hamid Abdoul (30 percent). The Trade Register shows a listing for another company, Business Media Group International, whose shareholders are Rachad El Jisr and William Avery, both with 50 percent.

Avery says that Business Media Group International was created as a spin-off, a company which can offer services to third parties, such as the organizing of events. However, he added that no activities are being carried out through this company.

BMG posted turnover in 2006 worth €3.3 mln and net losses of some €50,000, according to declarations registered with the Ministry of Finance.

Among the BMG group’s competitors are the Ringier, Publimedia, and Realitatea-Catavencu press trusts.