Post by The Ultimate Nullifier on Feb 11, 2015 8:59:42 GMT -6
variety.com/2015/biz/news/three-bids-for-stake-in-hong-kongs-struggling-atv-1201430945/
Three companies from Hong Kong and mainland China have come forward as bidders for a nearly 11% stake in Asia Television, Hong Kong’s insolvent second free-to-air broadcaster.
The stake sale is being handled by Deloitte China, after a court ordered that ATV raise new funds. But Deloitte’s managing partner Derek Lai said that the value of the bids fell short of expectations. ATV is also looking at selling off farm land that it owns.
ATV has endured a highly public meltdown over the past several months, following a dispute between shareholders and a succession of financial losses. In recent months staff have not been paid, which has prompted news room staff to threaten to quit. If the company were unable to comply with its obligations on news reporting that would in turn mean that ATV is in breach of the terms of its operating license and could be closed down.
In addition to staff wages, the company needs to raise cash to pay the existing license fee and a penalty imposed by the government, amounting to a combined US$1.32 million (HK$10.2 million). The overdue license payment is due in two instalments, this week (Feb. 18) and March 18.
Secretary for Commerce and Economic Development, Gregory So, said Wednesday that the Communications Authority would “start the necessary procedures including considering revocation of the licence.”
Two court cases relating to the unpaid wages are now scheduled for Feb. 13.
Mainland Chinese businessman Wong Ching controls 52% of ATV through Wong Ben-koon, a relative of his wife.
The 10.75% stake being sold is currently owned by Wong Ben-koon’s Panfair. Bidders are seeking to buy a further 40% stake from Wong Ching.
Three companies from Hong Kong and mainland China have come forward as bidders for a nearly 11% stake in Asia Television, Hong Kong’s insolvent second free-to-air broadcaster.
The stake sale is being handled by Deloitte China, after a court ordered that ATV raise new funds. But Deloitte’s managing partner Derek Lai said that the value of the bids fell short of expectations. ATV is also looking at selling off farm land that it owns.
ATV has endured a highly public meltdown over the past several months, following a dispute between shareholders and a succession of financial losses. In recent months staff have not been paid, which has prompted news room staff to threaten to quit. If the company were unable to comply with its obligations on news reporting that would in turn mean that ATV is in breach of the terms of its operating license and could be closed down.
In addition to staff wages, the company needs to raise cash to pay the existing license fee and a penalty imposed by the government, amounting to a combined US$1.32 million (HK$10.2 million). The overdue license payment is due in two instalments, this week (Feb. 18) and March 18.
Secretary for Commerce and Economic Development, Gregory So, said Wednesday that the Communications Authority would “start the necessary procedures including considering revocation of the licence.”
Two court cases relating to the unpaid wages are now scheduled for Feb. 13.
Mainland Chinese businessman Wong Ching controls 52% of ATV through Wong Ben-koon, a relative of his wife.
The 10.75% stake being sold is currently owned by Wong Ben-koon’s Panfair. Bidders are seeking to buy a further 40% stake from Wong Ching.