ATV's licence in jeopardy: lawyer
Regulator inclined to recommend that government reject broadcaster’s renewal request amid concerns over its management, judge told
ATV's licence to broadcast is in severe doubt, a court heard yesterday, with the industry's regulator telling bosses at the troubled station it was inclined to tell the government not to grant a renewal due to poor management and unsatisfactory performance.
The Communications Authority's views, shown in a draft of its recommendation sent to the station on September 5, were revealed to the Court of First Instance by counsel for Antenna Investments, a major shareholder in ATV. The licence expires at the end of next year, with the final decision resting with the chief executive and Executive Council.
Antenna is suing the station over allegations of poor management and is urging the court to appoint an independent supervisor to oversee the station.
Chua Guan-hock SC, for Antenna, read part of the authority's letter to the court. In it, the watchdog alleges that the station's corporate governance is deficient and that there are no proper checks and balances on the board. It says overall unsatisfactory performance also contributed to its likely decision.
Chua said Antenna had no idea what Wong Ching, the mainland businessman who is ATV's major investor, was thinking.
On the one hand, he told the court, Wong had arranged HK$3 billion in funding for the station this year to prepare for the licence renewal; on the other, Wong had demanded the station repay a loan of HK$1.09 billion within a month or he would wind it up. The company lost HK$378 million and had liabilities of more than HK$1 billion, the court heard.