BROADCASTING / PAYMENT DEADLINE LOOMS

PM's Office turns down iTV offer

ANUCHA CHAROENPO

The Prime Minister's Office yesterday turned down iTV's latest proposals to end their financial row and decided to seek a court order to force the television station to hand over about 100 billion baht. ITV representatives, led by chairman Niwatthamrong Boonsongpaisal, went to Government House yesterday with five offers for settling the issue with the Prime Minister's Office.

ITV is looking to try and find some sort of deal to settle the issue of outstanding concession fees and fines, plus interest, as the Jan 29 deadline for the payment draws near.

The meeting followed the decision by the broadcaster on Monday to agree to pay the concession fee, although it admitted it was having difficulties in securing loans for the payment.

ITV, controlled by Shin Corp, not only has to pay concession fees of 2.21 billion baht, but also has to pay fines of 97.76 billion baht and interest, now at 464 million baht. The deadline for payment set by the Supreme Administrative Court in November last year is Jan 29.

The Supreme Administrative Court's ruling put iTV's future in doubt and the company has been seeking some form of compromise.

But the Prime Minister's Office, which owns the concession, has showed no interest in softening its position.

ITV's latest proposals to find some middle ground with the state agency included issuing 1.5 billion new shares at par value of one baht per share and a cash surplus payment of 710 million baht to pave the way for the Prime Minister's Office to hold 52.9% of the stake; selling its 638 million shares to Thai investors to make them hold 52.9% of the stake; pay instalments of the concession fee; revoke the broadcasting contract; or let the government take over all iTV shares.

But the permanent secretary to the Prime Minister's Office Chullayuth Hiranyawisit insisted yesterday that iTV had to honour all money owed.

He said the office's committee overseeing the case will send a letter to the Office of the Attorney-General today asking it to lodge a petition with the Administrative Court to compel iTV to pay the amount.

General News
Bangkok Post
Thursday January 25, 2007