ATV's fate delayed until Thursday

(CHINADAILY)

Roughly300ATVemployeeswilllosetheirjobswhileanother130jobsandthestation’sfinalMarch31editionoftheMissAsiaPageanthanginthebalance—asfinanciersseektohammeroutanacceptableagreementwithprovisionalliquidatorDeloitte.

ATVmajorityshareholderWongChingandangelinvestorSiRongbinhaveuntilThursdaymorningtoreachadealtokeepthecash-strappedcompanyrunninguntiltheApril1expiryofitsbroadcastlicense.

Failuretoagreeonnewtermswillmeanthestation’sentire450-oddstaffwilllikelybeletgo,withstaffalreadyupinarmsoverDeloitte’sabortedattempttoimmediatelysackstaffonMonday.

HighCourtjudgeJonathanHarrissaidATV’slastgaspsforbreathhad“draggedonforages”.Hesaid“somethinghasgoneverywrongwiththemanagementofATVforyearsandthatiswhyitisnowindebttothetuneofHK$2billion”.

Harrissaiditwasnothisroletohelpthepartiesnegotiate,ortosecondguessDeloitte’sconduct.Headdedthatliquidatorswereexpectedtoactconservativelyandavoidfurtheraccumulationofliabilities.

The59-year-oldbroadcasterhasbeenteeteringonthebrinkofcollapseformonths,havingrepeatedlymissedwagepayments.Thisincludessalariesforthepasttwomonthsandmorerecentlyfailingtopayitsinsurancepremiums.

HarrisChang,representativeforDeloitte,toldChinaDailystaffwereeffectivelyheadedtoanuninsuredworkplace—aseparatecriminalmatter.

RepresentativeforSi,RonaldSun,toldtheHighCourthisclientwaspreparedtoofferaloantocoverHK$16millioninbackwagesaswellasHK$2.5milliontocoverMarchwages,whichwillbetreatedasaloanforthestationorasagiftifATVperishesunderitsmountainofdebt.

Si’soffercamewithconditions,includingthelayingoffof300staffbuttheretentionofatleasta120-strongskeletonstafftomaintainminimumoperations.BackpayforJanuaryandFebruarywillbeguaranteedfortheremainingcorestaffsolongastheysignontoserveouttheremainderofMarch.

Thenewsteamwillneedtomaintainoperation,aspartofATV’slicensingconditions.

Failuretofindthemuch-neededcapitalwilllikelysendliquidatorsbacktowork,dismemberingthecompanyanditsassetstorepaycreditorsinthecomingweeks.