​Fourth mainland firm makes ATV rescue bid

ThefateofAsiaTelevisionremainsupintheairfollowingthelatesttwistinthelifeofthetroubledoldestbroadcasterinHongKong.(ParkerZheng/ChinaDaily)

(CHINADAILY) Cash-strappedAsiaTelevision(ATV)hasreceivedtwoofferstoprovideuptoHK$800millionintwodaysafterafourthmainlandfirmannouncedabidtohelpsavethecity’soldesttelevisionstationjustweeksawayfromitsfinalfree-to-airbroadcast.

Thedecisionwasapprovedby99.99percentofshareholdersafteranextraordinarygeneralmeetingheldbyfabricprintinganddyeinggiantCo-ProsperityHoldings.ThecompanywillofferaHK$300millionloantoATVmajorityshareholderChinaCulturalMediaGroup(CCM)tohelpkeepthehard-upstationafloat.

Co-ProsperityCEOIpKa-posteppeddownasexecutivedirectorofthestationafterbeingindictedamidATV’sunpaidpayrollturmoilin2014.

ThecompanyearlierenteredamemorandumofunderstandingwithCCMtoremakeATV’sdramas.

InDecember,itannounceditwouldissueanadditional900millionshares.Ofthecapitalraised,itofferedHK$300milliontoCCMasathree-yearloanwithanannualinterestrateof12percent.

Co-Prosperity’sbidcomesadayafterathirdfirmwadedintoATV’sdrawn-outdemisewithyetanothertakeoverbid.

Mainland-basede-commercecompanyChinaTrendsHoldingsforwardedaHK$500millionbidwhichwillhavetobeapprovedbythecash-strappedstation’sprovisionalliquidatorDeloitte.

TheproposalwillcoveroutstandingpayrollsandDeloitte’syet-to-be-determinedfeesinexchangeforacontrollingstakeinthestation.

ATV’slicensewilllapseonApril1,butChinaTrendsHoldingsplanstosecureATV’sPearlRiverDeltalandingrightstolaunchWeb-basedTVservices.

Despitetheseeminglypromisingoutlook,theLabourDepartmentsuggestedstationemployeeswhostillhadnotreceivedtheirsalariesshouldapplyforliquidationthemselves,owingtouncertainties.

ThesuggestionwasmadeduringameetingbetweenthedepartmentandATV’semployees.Atotalof350employees,halfofthetotalstaffinitspeaktime,haveappliedtotheProtectionofWagesonInsolvencyFunduptonow.

Theconvenerofaconcerngroupmadeupof100formerandcurrentATVstaffers,TsangHin-kwok,saidhiscolleagueswerenotgettingtheirhopesupafterrepeatedcourtingbynewinvestorsovertheyearswhichhavefailedtotranslateintostablesalaries.

ATV’scashflowproblemsbeganin2014—withthestationnarrowlyavoidingacompleteshutdownlastFridayafterDeloitteannouncedmasslayoffs.

ATVmajorityshareholderCCMhaskeptlessthan30percentofthestation’sstaffontoserveasaskeletoncrewasthebroadcasterinchestowarditsfinalfree-to-airlicensebroadcast.