Zinkia, the company that produces the popular children’s animation series Pocoyo, has filed for protection from its creditors in a bid to resolve its financial problems before it is forced to go into administration.
The decision was taken after a debt issue earlier this month failed to produce the necessary liquidity, the company told Spain’s National Securities Commission (CNMV).
Zinkia meant to raise 7.8 million euros through bonds with an 11-percent yield aimed at small investors. But demand remained low, especially after the CNMV warned that it was a risky investment. The production company had meant to use the money to cover its urgent liquidity needs, refinance its debt and use the remainder to bolster its commercial teams.
Company officials said they would continue to negotiate with creditors “to try to refinance company debt.”
First aired in 2005, Pocoyo has a Spanish and an English version which remain popular with pre-schoolers.