iTV Court Ruling

[sriracha john]

Brief reprieve for iTV

Broadcaster iTV could have an extra 30 to 45 days to repay its overdue concession fees to the PM's Office.

Chulayuth Hiranyavasit, head of the Office of the Permanent Secretary of the Prime Minister's Office, Tuesday said he was considering the length of the second extension period for iTV to repay Bt2.21 billion in unpaid fees.

iTV has yet to pay the amount, which was due Tuesday, the end of the first extension period.

The broadcaster's concession contract allows the company to extend the debt-payment period twice, with each extension limited to a maximum of 45 days.

The Nation

----------------------------------------------

tick tock, tick tock, tick tock....

[sriracha john]

iTV managing director Songsak Premsuk announces a programming reshuffle, in order to focus more on news. The move is taking place even though iTV’s concession is still in question.

The Nation: Photos in the News

iTV seeks partners to raise funds for fees

Broadcaster ordered to pay only in cash wow...that's a lot of bank notes

The troubled broadcaster iTV is seeking new partners in an attempt to raise the money it needs to pay 2.21 billion baht in concession fees, according to managing director Songsak Premsuk. The Prime Minister's Office on Tuesday gave iTV Plc another 30 days to pay the sum plus 464 million baht in interest after executives admitted to the Stock Exchange of Thailand that it had been difficult to secure loans. It missed yesterday's deadline. ''We are so thankful that the PMO gave us another 30 days. But we would urge the office to separate the concession fee from the fine, which should be passed on to the arbitrator,'' said Mr Songsak, referring to a massive 97.76-million-baht fine for non-payment of fees.

Continued here:

http://www.bangkokpost.com/Business/01Feb2007_biz29.php

-----------------------------------------------

uhmm... it's way past arbitration time, Khun Songinmysack...it's already been adjudicated.

But hey, you go right ahead and spend your time reshuffling programs. You got lots of time to pay the bill.... Good luck to you.

[Jai Dee]

iTV seeks help from PM over debt repayment

The broadcaster iTV Plc is seeking help from Prime Minister Surayud Chulanont on its debt repayment.

According to its filing to the SET Friday, iTV submitted a letter to the premier on the same day appealing for justice.

It begged that the debt repayment to the PM Office should be limited to the differential of the unpaid concession fee totalling Bt2.21 billion and it is now under the process of procuring the money to repay such debt.

It stated that the fine of Bt100,000 should be decided by an arbitration committee.

Source: The Nation - 2 February 2007

[sriracha john]

It stated that the fine of Bt100,000 should be decided by an arbitration committee

Mustn't forget to add six more 0's to that Bt100,000 fine for accuracy. It's 100,000,000,000 baht.

[Jai Dee]

PM's Office warns iTV to pay the concession and penalty fee on time

Permanent Secretary to the PM’s Offfice Chulayuth Hiranyawasit (นายจุลยุทธ์ หิรัญยะวสิต) has affirmed that the PM’s Office will not extend the grace period for iTV to pay its fine, while affirming that PM’s Office has never violated the concession contract between the office and iTV.

In regard to iTV’s the concession fee estimated at 2.2 billion baht and its fine at 100 billion baht, Mr. Chulayuth said that iTV is required to pay those amount of money within March 2nd.

In the initial stage, the TV station said it did not have enough time to find the right financial institution for loans. As a result, the PM’s Office had announced to postpone the period. However, he said that the PM’s office will not extend the grace period for the second time.

Following iTV's request to pay by installments, Mr. Chulayuth said that he will seek advice from the Deputy Prime Minister and Minister of Finance, M.R. Pridiyathorn Devakul (ปรีดียาธร เทวกุล).

Source: Thai National News Bureau Public Relations Department - 06 February 2007

[Jai Dee]

Surayud says staff will not be affected by any change at iTV

Prime Minister Surayud Chulanont assured iTV staffed that they would not be affected by the government's decision regarding the concession of the TV station.

Surayud gave the assurance to a group of representatives of iTV staff who met him at Government House.

The group led by Kitti Singhapat asked Surayud to clarify the government's stance towards the station now that the management announced it could not fine money in time to pay for unpaid concession fees and a huge fine.

Source: The Nation - 8 February 2007

[slimdog]

a little more info about the item posted by Jai Dee earlier:

PM promises no impact on iTV station and staffs

Prime Minister Surayud Chulanont has promised not to allow the management change at iTV to impact on the station staff and the news editorial department, assistant news director Kitti Singhapat said Thursday.

"The transition for iTV's management is expected to be smooth and will not affect the broadcasting and staff," Kitti quoted Surayud as saying.

Led by Kitti, a group of 20 station newsmen and broadcasting staff submitted a petition calling for the government's intervention to ensure the handover of station's reins in an orderly manner.

The petition lodging happened after the incumbent management said it was unable to pay concession fees plus fine for overdue payments totalling Bt100 billion within the 30day deadline.

The concession default means that the PM's Office, which oversees the broadcasting concession, would cancel the contract and usher in a new management team.

In their petition, station workers made a fourpoint demand.

Firstly, the broadcast and programming should not be interrupted by management change.

Secondly, the station should remain as an independent news outlet in compliance with the media freedom.

Thirdly, the editorial department should be allowed to carry out its professional duty without any outside interferences.

Fourthly, the station's 1,070 workers should not be affected by the new management.

source: http://www.nationmultimedia.com/2007/02/08...es_30026331.php

Edited February 8, 2007 by slimdog

[Jai Dee]

iTV staff urge government to end dispute

Staff also requests that the TV station be allowed to continue as an independent media outlet

Fifty iTV reporters and staff gathered at Government House yesterday to ask Prime Minister Surayud Chulanont to settle the row between the TV station and the PM's Office.

Kitti Singhapat, a news host and the station's deputy director, along with other employees, held talks with the prime minister. They also handed him a letter.

Mr Kitti said the station's executives had told staff they have no money to pay concession fees and fines, totalling 100.45 billion baht, to the Prime Minister's Office by the given date.

Last week the office extended the deadline from the end of last month until March 2 for iTV to settle the debt after the station failed to find the money.

"We are concerned about the row and would like the prime minister to consider the best way out that does not affect all iTV staff," Mr Kitti said.

Staff submitted four demands, which they would like met if a change in iTV's administration takes place.

They want the government to allow iTV to continue broadcasting under the original format with 70% of airtime allocated to news content and the rest for entertainment programmes, to let iTV work as an independent media outlet, to promote editorial independence, and ensure job security for staff.

After the meeting, Mr Kitti said the talks went well and that Gen Surayud promised to clear up the dispute.

The prime minister said any changes in iTV's administration would not affect iTV staff and the government had no policy to stop iTV broadcasting, he said.

Gen Surayud said he would seek advice from Deputy Prime Minister and Finance Minister Pridiyathorn Devakula and permanent secretary of the Prime Minister's Office Chullayuth Hiranyawisit about what to do, Mr Kitti said.

Source: AsiaMedia - 10 February 2007

[sriracha john]

Mr Kitti said the station's executives had told staff they have no money to pay concession fees and fines, totaling 100.45 billion baht, to the Prime Minister's Office by the given date.

Staff submitted four demands, which they would like met if a change in iTV's administration takes place.

I've never filed for bankruptcy before, but if I did... I don't think I would start off the proceedings by listing demands from my debt-holders, but then again I realize, things may be done differently here.

[chownah]

Mr Kitti said the station's executives had told staff they have no money to pay concession fees and fines, totaling 100.45 billion baht, to the Prime Minister's Office by the given date.

Staff submitted four demands, which they would like met if a change in iTV's administration takes place.

I've never filed for bankruptcy before, but if I did... I don't think I would start off the proceedings by listing demands from my debt-holders, but then again I realize, things may be done differently here.

It's the STAFF that's making the demands not the company that owes the money.

[sriracha john]

Mr Kitti said the station's executives had told staff they have no money to pay concession fees and fines, totaling 100.45 billion baht, to the Prime Minister's Office by the given date.

Staff submitted four demands, which they would like met if a change in iTV's administration takes place.

I've never filed for bankruptcy before, but if I did... I don't think I would start off the proceedings by listing demands from my debt-holders, but then again I realize, things may be done differently here.

It's the STAFF that's making the demands not the company that owes the money.

sorry, I thought they worked for the company the owes the money.

If the company they work for goes bankrupt I guess they are affected by that, somewhat.

Edited February 11, 2007 by sriracha john

[chownah]

Mr Kitti said the station's executives had told staff they have no money to pay concession fees and fines, totaling 100.45 billion baht, to the Prime Minister's Office by the given date.

Staff submitted four demands, which they would like met if a change in iTV's administration takes place.

I've never filed for bankruptcy before, but if I did... I don't think I would start off the proceedings by listing demands from my debt-holders, but then again I realize, things may be done differently here.

It's the STAFF that's making the demands not the company that owes the money.

sorry, I thought they worked for the company the owes the money.

If the company they work for goes bankrupt I guess they are affected by that, somewhat.

Well actually they DO work for the company but they are only employees....they are not the OWNERS of the company who are the ones who legally owe the money......if the OWNERS of the company don't like the message that thier STAFF is sending to the gov't then they can FIRE them all!!!!.......but they won't because here's a little secret......everyone wants to find a way out of this pickle.....you see the OWNERS are people with alot of clout here in Thailand (even though some/most/all of them are foreigners) so the gov't really wants to accomodate them....but....the gov't doesn't want to lose face by caving in to what might be seen as demands from the OWNERS......so......since the STAFF would like to see operations continue (as would we all since they ARE the only broadcast TV station that is not gov't controlled (hahahhahhaa) etc. this gives the gov't a way to back off without losing face since they are accomodating the reasonable requests of the STAFF (all Thai or nearly so)....freedom of the press and all that..............at least this is one of the possibilities I see in this posturing.....the other thing I think is possible is that this is a way for the gov't to take over the station "temporarily" to keep things running pending payment of the balance due.....which could take a long long time...I'm sure it wouldn't bother the present military dictatorship to arrange for its supporters to take over this station...for an indefinite length of time.......

Chownah

Edited February 11, 2007 by chownah

[hammered]

Mr Kitti said the station's executives had told staff they have no money to pay concession fees and fines, totaling 100.45 billion baht, to the Prime Minister's Office by the given date.

Staff submitted four demands, which they would like met if a change in iTV's administration takes place.

I've never filed for bankruptcy before, but if I did... I don't think I would start off the proceedings by listing demands from my debt-holders, but then again I realize, things may be done differently here.

It's the STAFF that's making the demands not the company that owes the money.

sorry, I thought they worked for the company the owes the money.

If the company they work for goes bankrupt I guess they are affected by that, somewhat.

Well actually they DO work for the company but they are only employees....they are not the OWNERS of the company who are the ones who legally owe the money......if the OWNERS of the company don't like the message that thier STAFF is sending to the gov't then they can FIRE them all!!!!.......but they won't because here's a little secret......everyone wants to find a way out of this pickle.....you see the OWNERS are people with alot of clout here in Thailand (even though some/most/all of them are foreigners) so the gov't really wants to accomodate them....but....the gov't doesn't want to lose face by caving in to what might be seen as demands from the OWNERS......so......since the STAFF would like to see operations continue (as would we all since they ARE the only broadcast TV station that is not gov't controlled (hahahhahhaa) etc. this gives the gov't a way to back off without losing face since they are accomodating the reasonable requests of the STAFF (all Thai or nearly so)....freedom of the press and all that..............at least this is one of the possibilities I see in this posturing.....the other thing I think is possible is that this is a way for the gov't to take over the station "temporarily" to keep things running pending payment of the balance due.....which could take a long long time...I'm sure it wouldn't bother the present military dictatorship to arrange for its supporters to take over this station...for an indefinite length of time.......

Chownah

ITV were used as government mouthpiece by the previous regime senior members of which owned them at the time, so it is kind of ironic that issues of freedom of the media are brought up when discussing ITV. Also when a whole bunch of journos were forced out of ITV for not following the government line it was pretty much the current staff that put their heads down ignored the plight of their colleagues and continued to pour out exactly what their masters wanted. There have been articles both in Thailand and abroad about the lack of sympathy for both ITV as a company and its staff as both stand now based on the ITVs previous wilingness to be more of a government controlled mouthpiece than any government run station (some links are earlier in this thread). While hoping that ITV can be returned to what it was initially meant to be and initially operated as, we should also not forget the role of the management and so called journalists as a pure propoganda service for a previous regime. In that lies another challenge in trying to save what was meant to be Thailands independent TV news service.

[Jai Dee]

iTV case to be forwarded to Cabinet after March 6

Permanent Secretary of the Office of the Prime Minister will forward the iTV case to the Cabinet after March 6, the due date when iTV has to pay fine to the PM’s Office as it had violated the concession contract.

Permanent Secretary to the PM’s Office Chulayuth Hiranyawasit (นายจุลยุทธ์ หิรัญยะวสิต) revealed that iTV can submit its request to extend the payment period to the PM’s Office until March 6. After that, the PM’s Office will forward the case to the Cabinet which will then have sole mandate to decide iTV’s faith. The permanent secretary also affirmed that the PM’s Office will take the broadcaster’s request into consideration before it has forwarded the case to the Cabinet.

In response to iTV’s announcement that it has no money to pay the fine, Mr Chulayuth said that iTV still has enough time to find the money. In addition, he ensured that iTV’s employees will not be affected by the case as the prime minister had earlier promised them.

Source: Thai National News Bureau Public Relations Department - 14 Febuary 2007

[Jai Dee]

iTV seeks injunction

Embattled broadcaster iTV will seek an injunction from the Central Administrative Court today against a PM's Office demand for repayment of an almost Bt100-billion debt.

An iTV source yesterday said the broadcaster would ask the court to rule its repayment to the PM's Office be limited to the unpaid concession fee of Bt2.2 billion, while payment of a fine of more than Bt97 billion should be settled by an arbitration panel.

Earlier this month, iTV made the same appeal to Prime Minister Surayud Chulanont.

The PM's Office, which owns the iTV concession, has demanded iTV pay before a March 6 deadline both the unpaid concession fee and a fine for adjusting the ratio of prime-time news-entertainment television programming without its consent.

Source: The Nation - 20 February 2007

[Jai Dee]

iTV asks Admin Court to halt contract termination

iTV Tuesday asked the Administrative Court to issue an injunction against the contract termination of the TV station by the PM's Office.

The Permanent Secretariat of the PM's Office threatened to terminate its contract with iTV if the stations failed to pay unpaid fee of Bt2.2 billion and penalty fees worth over Bt100,000 by March 6.

iTV asked the court to issue the injunction pending a decision of an arbitration committee as to how much iTV should pay for late fee payments.

iTV said if the contract was terminated, some 1,000 staff and a lot of audience would be affected.

Source: The Nation - 20 February 2007

[sriracha john]

iTV asks Admin Court to halt contract termination

iTV Tuesday asked the Administrative Court to issue an injunction against the contract termination of the TV station by the PM's Office.

and the answer is????

NO!

Court throws out iTV injunction

The Central Administrative Court have dropped a petition from the embattled broadcaster iTV for an injunction against a PM's Office demand for the repayment of almost 100 Billion Baht in debts.

Judge Somphop Pongsawang announced Wednesday that the broadcaster asked the court for an injunction against the PM's office to cancel the iTV concession contract because the broadcaster has yet to pay the 100 Billion Baht debt.

The PM's office asked the court to urge iTV to pay the concession fee of Bt2.2 billion within 30 days since the court's sentence.

Somphop said the court considered that the PM's office has the right to drop the contract with iTV. However, iTV has the right to ask for compensation if the cancellation of the contract is done dishonestly.

He added the PM's office also has the right to force iTV to pay the debt within 30 days, so the court saw no reason to give an injunction against the order.

The PM's Office, which owns the iTV concession, has demanded iTV pay before a March 6 deadline both the unpaid concession fee and a fine for adjusting the ratio of primetime news-entertainment television programming without its consent.

The Nation

------------------------------

hurry up now, iTV.... there's only 11 days to go...

[sriracha john]

STATION MUST PAY UP

iTV denied court protection

The Central Administrative Court yesterday rejected a petition from iTV Plc, operator of iTV television station, for a temporary order blocking the Prime Minister's Office from revoking its broadcasting concession if it fails to pay 100 billion baht in fees and fines by March 6. The court said there was no good reason to issue an order to protect iTV's interests. The PM's Office had the lawful right to revoke iTV's concession under the terms of their contract.

Continued here:

http://www.bangkokpost.com/News/22Feb2007_news04.php

[ThaiGoon]

STATION MUST PAY UP

iTV denied court protection

The Central Administrative Court yesterday rejected a petition from iTV Plc, operator of iTV television station, for a temporary order blocking the Prime Minister's Office from revoking its broadcasting concession if it fails to pay 100 billion baht in fees and fines by March 6. The court said there was no good reason to issue an order to protect iTV's interests. The PM's Office had the lawful right to revoke iTV's concession under the terms of their contract.

Continued here:

http://www.bangkokpost.com/News/22Feb2007_news04.php

Nice. It would be great if they got the money though. 100 billion bath could easily pay for 3 new subway lines or other useful projects. Only a pipe dream I guess. They will have their broadcasting concession revoked.

[sriracha john]

Pridiyathorn assigned to make final decision on dispute over iTV fees

Prime Minister Surayud Chulanont said Thursday that he had empowered Deputy Prime Minister and Finance Minister Pridiyathorn Devakula to make a final decision over the dispute over the unpaid fees of iTV.

When asked what the government would do if iTV fails to meet the deadline to pay the unpaid fees and massive fines by early next month, Surayud said Pridiyathorn will make a final decision with the permanent secretary for PM's Office.

He said if Pridiyathorn sees that the issue needed to be sent to the Cabinet for a ruling, the Cabinet would take up the issue for consideration.

The Nation

[slimdog]

One happy company:

BEC likely to lift rates as advertisers switch from iTV

BEC World Plc, the operator of television Channel 3, is likely to increase its advertising rates later this year after keeping them unchanged since 2003. Chatchai Tiamthong, BEC's vice-president for finance, said the station's strategy was to charge more for commercials when demand for its prime-time shows was high, a trend he had been observing since early this year.

The station has already expanded its soap opera programmes to two hours following the evening news, from 90 minutes previously. Currently, commercials on prime-time programmes broadcast from 6 to 10:30 pm cost 420,000 baht per minute, the second most expensive in the industry after the ratings leader, Channel 7, which charges 470,000 baht.

Full story: http://www.bangkokpost.com/Business/22Feb2007_biz35.php

Edited February 22, 2007 by slimdog

[sriracha john]

SET suspends iTV's trading

The Stock Exchange of Thailand has suspended iTV Plc stock as the company's auditor issued a disclaimer of pinion on its financial statements saying the figures failed to reflect the actual position of the company.

The SP, or suspension, sign has been put on the stock since the second trading session yesterday to enable shareholders and investors to have sufficient time to scrutinise the auditor's report, the SET said. However, the SET will allow the trading of iTV and post an NP, or notice pending sign effective from the first trading session tomorrow until the company submit its amended financial statements for the Securities and Exchange Commission concludes that it will not be needed to amend the financial statements.

The Nation

[slimdog]

iTV's must pay fines, fees by Mar. 6 to retain concession

iTV Plc will lose its television broadcast concession if it fails to pay about Bt100 billion in fines and fees by March 6, the finance minister said Tuesday.

The government would take control of iTV in the initial phase, Deputy Premier and Finance Minister Pridiyathorn Devakula said.

"If iTV fails to pay the fine there is no other option, but to cancel the concession, however, employees will be retained," Pridiyathorn added without saying how iTV would continue to operate if the concession is cancelled.

source: http://www.nationmultimedia.com/breakingne...newsid=30028024

also trading halted again...

iTV Trading halted

The Stock Exchange of Thailand has halted the share trading of iTV Plc because there is a significant information concerning possibility of concession withdrawal if it fails to pay the concession fees and fines.

The trading will be halted from Tuesday afternoon until the company has clarified or disclosed this material information to the SET.

The trading halt followed the Cabinet's resolution today that iTV's concession could be revoked if the broadcaster fails to pay the concession fees and fines on March.

source: http://www.nationmultimedia.com/breakingne...newsid=30028025

[Temporaneo]

I wonder how can they expect ITV to pay 100 billion baht. The net equity of the company is just 4 billion baht. Also there is no reason for such a punitive fine, considering ITV has almost always closed its balances losing money.

The hatred for Thaksin and now for Singapore's Temasek has really blinded the already slow minds of this government. Once ITV signal will disappear, their already sinking popularity will get a further deep dive for sure.

[slimdog]

iTV could be nationalised : PM Office Minister

The iTV could come to an end if it failed to repay debt of Bt100 billion within March 6. The government will revoke concession and nationalise the station, PM's Office Minister Khunying Divapadi Meksawan said Tuesday.

The decision was reached at the weekly Cabinet meeting, which is conducted every Tuesday, Dipavadi said.

After the cancellation of the contract, the government will then appoint new executive board to oversee the station, she said.

Meanwhile, Deputy Prime Minister Pridiyathorn Devakula said that the government's decision will not have impacts on iTV staffs and broadcast of the station.

"The station's broadcast will continue as usual. But the station will have to change the name," Pridiyathorn said.

iTV has been ordered to pay Bt100.343 billion penalty to the government, of which Bt2.21 billion was for unpaid concession fees, Bt464 million was the interest and a Bt97.76 billion fine for adjusting its television programming content without the consent of the concession owner.

The dispute between iTV and the PM's Office began in September 2002, when the broadcaster appealed to an arbitration panel over its dispute with the PM's Office regarding the terms of its concession contract.

In January 2004, the arbitration panel allowed iTV to pay a lower concession fee and adjust the ratio of its news and entertainment programming by raising the entertainment content.

The PM's Office appealed to the Central Administrative Court, which last May overruled the arbitration panel's decision. The broadcaster later appealed to the Supreme Administrative Court, which last month upheld the ruling of the lower court.

As a result, the PM's Office is demanding immediate payment of the fine, plus backdated concession fees.

source: http://www.nationmultimedia.com/2007/02/27...es_30028026.php

[sriracha john]

INDEBTED STATION

Panel will be set up to control embattled iTV

Govt moves to protect workers' jobs in case licence is revoked on March 7

The PM's Office will today form a panel to supervise iTV Plc if its licence is revoked as a result of it being unable to pay fines and fees of Bt102.21 billion by the March 6 deadline.

Meanwhile, Deputy Prime Minister MR Pridiyathorn Devakula said the government would pursue the legal pressure on iTV for the payment of the Bt2.21 billion in concession fees and the Bt100 billion in fines for violations of its programming requirements.

He said even though its concession would be revoked, iTV remained a company and was obligated to meet its financial responsibilities.

"The licence revocation will take effect immediately on March 7 and the committee will be in place to ensure a smooth transition and take care of technical, legal, financial and human resource aspects," PM's Office Minister Khunying Dhipava-dee Meksawan said.

The panel will comprise representatives from the government sector, including Dhipavadee, PM's Office Permanent Secretary Chula-yuth Hiranyawasit, and representatives from the Attorney General's Office, the Council of State, and the Finance Ministry.

Chulayuth said the PM's Office would approach certain individuals to sit on the panel. MCOT Plc could then be brought in to operate iTV on a contract, but this depended on the committee's decision. Eventually, the programming ratio during prime time, of which 70 per cent should be devoted to news content, would be kept intact.

Ahead of the Cabinet's consideration of iTV's five options - that included revoking the concession - iTV stock was subject to heavy speculation. Opening at Bt0.86, it peaked at Bt1.16 before ending the morning session at Bt1.05 following rumours that iTV had found a buyer and that the government may waive the hefty penalty. Before trading was halted in the afternoon session, the stock gained 11.70 per cent from the previous closing with a transaction value of Bt101.64 million, being the tenth most active stock yesterday. The trading will be halted until iTV clarifies the issue to the Stock Exchange of Thailand.

After the one-hour secret meeting yesterday, the Cabinet approved the concession revocation but agreed that all 1,700 employees of iTV would not be laid off.

During March 1-6, the PM's Office will summon their representatives who will tell the employees to submit their resignations from iTV - and reapply for their jobs with the office. They will keep their present salaries. Dhipavadee said they deserved the privilege as iTV was not like other private companies as a state concessionaire.

According to Chulayuth, the PM's Office also planned to change the company's name and logo, which could be done without having to inform the Cabinet. The name and logo are copyrighted to iTV and the PM's Office had no right to use them further.

"These are the preparations the government will take if iTV eventually fails to pay the money on March 6. We cannot wait until the day comes and then act. This is a common procedure," Dhipavadee said.

iTV executive chairman Niwatthamrong Boonsongpaisan told a press conference yesterday: "We accept what is coming as iTV has no money to pay for the fees and the fines."

He said the company would co-operate with the government for a smooth transition. He estimated that if all employees remained employed by iTV on the day the concession was revoked, iTV would need to pay compensation of Bt200 million.

"We have done everything we can to lengthen the life span. But as the PM's Office insists on the Bt100 billion in fines, we see it as inappropriate, unjust and unfair," Niwatthamrong said.

"We can do nothing more, and paying Bt2 billion is of no use. iTV has made a plan to be implemented after the concession revocation but the plan will be revealed only after shareholders approve it at the March 20 meeting."

While the Office would be the de-facto owner of the television channel, a professional team will be hired to run iTV.

"By doing that we will ensure we're following the rules. In 10 days, all this should be clear although now we don't know exactly, but it will be an efficient management and the government may need to allocate money from the central budget to finance the operations," Pridiyathorn said.

As for the approach by MCOT to run iTV, Jade Dhonavanik, dean of Siam University's Faculty of Law, said it was ridiculous given that MCOT is now a private company, which should not be allowed to run government properties.

"If another private operator is to be selected, the government should ensure it follows the rules. We are attacking the Thaksin government for not honouring the rules. This government should not follow in its footsteps."

Jade foresees that iTV could be forced to pay the unpaid concession fees and the fines. If it cannot, it could face bankruptcy and be liquidated.

iTV staff represented by Tuangporn Asvavilai, yesterday issued a statement to thank the Cabinet for solving the problem without causing havoc to employees. They vowed to continue their work in a competitive environment and urged the government to ensure no political intervention.

The Nation

[sriracha john]

Thailand May Seize Temasek's ITV, Claims $2.8 Billion

Thailand's government said it will seize ITV Pcl, a television network controlled by Singapore's Temasek Holdings Pte, unless the broadcaster pays 100 billion baht ($2.8 billion) in penalties by March 6.

"If ITV can pay, they can continue operations, but if they can't, we have no other choice," Finance Minister Pridiyathorn Devakula said in Bangkok today.

ITV's Executive Chairman Niwattumrong Boonsongpaisan has said it will be "impossible" to pay the fines, imposed because ITV didn't show enough news and educational programs and pay a full concession for its license. Temasek, owned by Singapore's finance ministry, said in a statement today it declined to comment.

"This seems to be the end of ITV," said Chirasit Vuttigrai, a Bangkok-based analyst at DBS Vickers Securities. "Retail shareholders will be hurt the most."

ITV shares, which had dropped 92 percent since the Temasek takeover, rose 12 percent today on optimism the government would save the company. The Stock Exchange of Thailand halted trading in ITV after Pridiyathorn's announcement.

"All 1,010 employees want to continue operating ITV as an independent news station without state interference," the company said in a release. "We want to have freedom in doing business, so ITV can compete."

Temasek last year led a group of investors buying Shin Corp., which controls ITV, Advanced Info Service Pcl, Thailand's biggest mobile-phone company, and Shin Satellite Pcl, the country's only satellite operator among other assets.

The group bought more than 96 percent of Shin Corp. between January and March 2006, paying 143.12 billion baht. About half was bought from Thaksin's family, sparking demonstrations because the deal was structured so they didn't have to pay tax on the proceeds.

ITV's market capitalization has sunk to just 1.27 billion baht. Shin Corp. owns a 53 percent stake in the broadcaster, which represents about "1 percent of Shin's net asset value," DBS's Chirasit said.

The subsequent coup, the imposition of capital controls and an escalation of violence by Muslim separatists triggered an exodus by investors. The value of investment applications in Thailand fell 24 percent last year, the Board of Investment said Feb. 1.

"The political situation is just so messy I don't feel I have any chance in forecasting what's going on," said Jorry Noeddekaer, who helps manage $1.4 billion of Asian stocks at New Star Asset Management Ltd. in London, which has sold shares held in Thai companies. "The risk premium is very high."

Spending by Singapore companies, which had been the biggest buyer of Thai assets, slumped 88 percent last month, the Bangkok Post reported today.

Thailand's interim government, installed by the junta following the Sept. 19 coup, will establish a committee under Thipawadi Meksawan, minister to the Prime Minister's Office, to run the network until it finds "experts in the television business" to take over, Pridiyathorn said.

ITV's name will be changed, and the government will continue to pursue payment, he said.

"We want to make the transition as smooth as we can," Pridiyathorn said. "For the employees, we want to keep the whole team, as they are good."

ITV will try to compensate workers who will be forced to find new jobs or sign onto the state-run version of ITV, Niwattumrong said in a faxed statement. The company will hold a shareholder meeting March 20, he said.

"If the government wants ITV to continue operating, it needs to take responsibility for office rentals, leasing of TV equipment including helicopters and satellite transponders, and all the operations contracts," Niwattumrong said. "The company has done all it can to solve the problems, but it got no response from all related agencies."

ITV has no connection to ITV Plc, a U.K.-based broadcaster.

ITV's fines arose because ITV was granted reduced concession fees and a cut in the number of hours it had to devote to news and educational programming by an arbitration panel in 2005. Thai courts later overturned the panel's decision and ordered ITV to pay 2.2 billion baht in back-fees and interest of 15 percent, plus a 97.8 billion baht fine. The company was also told to restore programming to 70 percent news and education.

The company has proposed paying only the back-fees, pending an arbitration tribunal decision on whether the fine is reasonable and the conditions are fair. In January, it proposed the government take a controlling stake to offset some of the money owed, or for it to be allowed to pay concession fees in installments, while the fine is negotiated.

The various offers were turned down by the government, while Thai courts rejected the company's appeals.

Citing costs related to the fees and interest payments, ITV yesterday reported a 2006 net loss of 1.78 billion baht. The broadcaster became profitable for the first time in 2004 after four years of losses, according to data compiled by Bloomberg. It had a record profit of 679.1 million baht in 2005.

Board Chairman Boonklee Plangsiri resigned yesterday. He was replaced by Anan Leetrakul, the company said in an exchange filing.

Today's announcement came as ITV's parent, Shin Corp., said 2006 profit plunged 60 percent to 3.41 billion baht. It had a fourth-quarter loss because of ITV's accounting for concession costs.

- Bloomberg

[sriracha john]

OVERDUE CONCESSION FEE

Cabinet gives iTV one week to pay, or pack up

The cabinet yesterday decided to revoke iTV's broadcasting concession if it fails to pay an overdue concession fee of 2.2 billion baht to the Prime Minister's Office by Tuesday. Prime Minister's Office Minister Dhipawadee Meksawan, overseeing the Permanent Secretary's Office, which is iTV's contract partner, said the cabinet had considered all options proposed by the troubled television station, including issuing new shares to inject fresh cash into the firm, before making the decision. "If the company doesn't pay the concession fee to the office on the due date, the cabinet will allow the Permanent Secretary's Office to revoke the broadcasting concession immediately," said Khunying Dhipawadee.

Continued here:

http://www.bangkokpost.com/News/28Feb2007_news03.php

[Prakanong]

A bit similar

"Thai government moves to take over private TV station

Posted: 28 February 2007 0109 hrs

Photos 1 of 1

Pridiyathorn Devakula

BANGKOK : Thailand said Tuesday that the government would take over the nation's only private television broadcaster if it fails to meet a deadline next week to pay 2.8 billion dollars in fines and overdue fees.

The battle over iTV marks the latest move by the military-backed government against companies controlled by Shin Corp, a telecom giant founded by deposed prime minister Thaksin Shinawatra.

Shin Corp was bought last year by Singapore's investment firm Temasek, sparking a popular uproar that eventually led to the coup against Thaksin in September.

The takeover threat came after iTV lost a court battle over its concession fees. The company faces a March 6 deadline to settle the overdue fees and fines.

"We have to revoke the concession because iTV cannot pay the amount of money ordered by court," Finance Minister Pridiyathorn Devakula said.

"We have no any other choice. We need to cancel its concession because we are the owner of airwaves," he said.

ITV began broadcasting mainly as a news network in 1996, as the only free-to-air station in Thailand not run by either the government or the military.

Under its original concession, it was required to pay one billion baht a year in fees to the government, and was required to maintain 70 percent of its programming as news shows.

But the station's reporting of Thaksin's first campaign for prime minister angered the billionaire politico, and his Shin Corp bought a majority stake in iTV in 2001.

The new ownership then watered down the news content, providing more entertainment shows that resulted in a lawsuit claiming that iTV had violated the terms of its concession.

A court ruled in 2004 that only 50 percent of iTV's programming needed to be news, and lowered its concession fees to 230 million baht a year.

But the Supreme Administrative Court overturned that decision in December, and ordered the station to pay the overdue fees as well as fines, which threatened to bankrupt the company.

Singapore's Temasek now holds about 53 percent of iTV through Shin Corp, which critics say gives undue influence over Thai media to a foreign country.

Shin Corp said Tuesday that iTV posted losses of 1.78 billion baht in 2006, against profits of 679 million baht in the previous year, because of the increased concession fees.

Thai press freedom groups, meanwhile, worried that a government takeover would destroy what little independent reporting still exists on the nation's airwaves.

"This would be a step backward for media," said Supinya Klangnarong, who heads the Campaign for Popular Media Reform.

"Taking control of iTV will mean that all the stations have the same news reports. Having iTV as a private, independent station is a way to balance the news reports," she said.

The Thai Broadcast Journalists Association urged the government not to take over iTV, but to help the company restructure to settle its debts before returning as an independent station.

"The government should bring iTV back to its original mission of being 'independent television'," association president Takerng Somsup said.

"During the process, the government should use iTV as a public interest television broadcaster," he said. "ITV should not be used as political tool."

- AFP /ls

"

[sriracha john]

Resigned:

Boonklee Plangsiri

Weerawong Chittmittrapap

THAILAND: Boonklee quits as iTV chairman

Boonklee Plangsiri, considered the right-hand man of Shin Corp founder and ousted premier Thaksin Shinawatra, has stepped down as the chairman of iTV as the company faces an unpredictable future.

The troubled broadcaster is currently facing possible bankruptcy from state fines of up to 100 billion baht for alleged concession violations.

Niwattumrong Boonsongpaisan, a director of iTV Plc said yesterday that the board had approved the resignations of Mr Boonklee and Weerawong Chittmittrapap, a director and the member of the audit committee.

Anan Leetrakul has been named chairman of the board and of the audit committee, effective immediately.

The board also approved the omission of a dividends for fiscal 2006, citing its accumulated loss.

iTV posted a net loss of 1.78 billion baht last year against a net profit of 679 million in 2005. Revenue last year declined by 7.9% to 2.16 billion baht.

The company attributed the revenue decrease mainly to intensified competition for television advertising, the uncertain political environment and general economic slowdown.

As well, since mid-2006 the company has been affected by uncertainty about its programming schedule, which has caused some clients to delay advertising purchase decisions.

The company reported its concession fee for 2006 at 2.506 billion baht, a significant increase from 230 million in 2005, reflecting the accrued differences in concession fees payable for the period from 2004 to 2006 plus interest.

The actions were taken in accordance with a Supreme Administrative Court ruling on Dec 13, 2006. It upheld a Central Administrative Court revocation of an arbitration award dated Jan 30, 2004.

In addition to being liable for higher concession fees, iTV has been ordered to restore its ratio of news to entertainment programming to 70:30, in line with the terms of its original concession from the Prime Minister's Office, from 50:50.

The company is facing difficulty securing the funding to repay the difference in the unpaid concession fee totalling 2.21 billion baht plus interest of 15% per year. On Jan 4 it submitted a case contesting the amount to an arbitration panel but no ruling has been made yet.

iTV has proposed five options: installment payments; converting debts to equity to be acquired by the PM's Office; finding private companies to acquire Shin Corp's stake; making a partial repayment and repaying the rest with equity; or returning the TV concession.

ITV shares closed yesterday on the Stock Exchange of Thailand at 0.94 baht, up one satang, in trade worth 3.91 million baht.

- Asia Media