ATV's future rests on court decision
Updated: 2016-03-01 11:19
By Kahon Chan in Hong Kong(HK Edition)
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The future of cash-strapped Asia Television (ATV) will be decided by a pending court ruling - as the provisional liquidator and investor battle over a plan to cease broadcast to stop losses.
The rollercoaster ride for the station's remaining 400 staff began last Wednesday when Deloitte was appointed by the High Court as ATV's provisional liquidator. This is in response to a winding-up petition initiated by former investor Wong Ching.
Scores of ATV employees walked out from their jobs last month after the station failed to settle wages on the statutory deadline. The broadcaster also owes the government over HK$1 million in fees and fines relating to its broadcast licenses.
As part of restructuring efforts, Deloitte on Monday instructed staff to pack their belongings because most of them will be dismissed. According to leaked recordings aired on rival stations, the liquidator found only HK$200,000 in the station's bank accounts.
Derek Lai Kar-yan, Deloitte's managing partner of China's Southern Region, told reporters outside the station's soundstage that most ATV staff would be let go. The broadcaster will have to go off the air because the layoff will affect all operating staff.
Just as Deloitte invited media to a briefing on Monday evening, station executives filed paperwork with the High Court to request that the appointment of a liquidator be suspended.
The media briefing was canceled at the last minute. The court directed Deloitte not to execute its cost-cutting plan until 3 pm today (Tuesday). This is when the judge decides whether to entertain request made by the ATV management. ATV will stay on air for the time being.
The station's public relations manager Jeff Wong Sau-tung said outside the court they were committed to observing the broadcast license terms until their license expires on April 1.
ATV investor Si Rongbin sent local Chinese newspaper Ming Pao a photo depicting a briefcase packed with cash as his answer to the cash-flow question. He claimed fresh cash had been set aside to cover wages, but did not specify the amount.
The court's hearing list indicated ATV did not hire a legal representative in their application.
Secretary for Labour and Welfare Matthew Cheung Kin-chung said the government was very concerned about the station. Labour Department officers on Monday afternoon collected 250 forms from ATV staff for wage protection under the Insolvency Fund.
The Labour Department will organize a special job fair on March 22 with about 200 vacancies in the broadcasting industry. Cheung stressed that the provisional liquidator is responsible for providing payroll information if the layoff plan goes ahead.
kahon@chinadailyhk.com
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An Asia Television employee walks into the ATV headquarters in Tai Po on Monday. Edmond Tang / China Daily |
(HK Edition 03/01/2016 page8)