Persgroup takes no action on mismanagement case

Thursday 02 September 2010

Persgroep Nederland, the new owner of the PCM newspaper group, has decided not to take any legal action against former managers found guilty of maladministration earlier this year.

The company court ruled in May that executives at PCM did mismanage the company between 2004 and 2007 when it was owned by British private equity company Apax.

In particular they were wrong to saddle the company with high debts and interest payments through the leveraged buyout by Apax, the court said.

The Persgroep said the legal options for claiming damages from shareholders and executives were extremely limited.

Nevertheless, the company said in a statement that those concerned would have to decide for themselves if it is 'ethically responsible' to keep money made from the takeover.

© DutchNews.nl

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