10.31 Europe/London, September 7, 2011 By Chris Dziadul

The owner of Romania’s Realitatea Media has provided reasons why the company has embarked on insolvency proceedings.

Quoted by Mediafax, Elan Schwartzenberg said that the move, which has the approval of the company’s head Sebastian Ghita, would last over three years and was made in order to protect it from outside developments.

He added that its two main problems are large debts, “not necessarily justified”, run up in the past and large monthly losses.

Schwartzenberg acquired a 92% interest in Realitatea Media from the entrepreneur Sorin Ovidiu Vantu earlier this year.

The company’s interests include the TV channels Realitatea TV and The Money Channel.