Hong Kong tech company proposes HK$500 million lifeline for embattled broadcaster ATV
China Trends Holdings pitches two debt-restructuring plans, offering to rebuild station and develop its online television business
A listed Hong Kong tech company is proposing to extend a lifeline of up to HK$500 million in loans to rebuild ATV and develop the embattled station’s online television business. A separate sum of HK$300 million in loans from another firm is also in the pipeline.
In a statement posted late Tuesday night on the Growth Enterprise Market and Hong Kong Exchanges and Clearing, China Trends Holdings, an ATV creditor, said it wanted to “inject” its web-based interactive TV platform into the debt-laden station and turn it into an “internet TV business with e-commerce media characteristics”.
But ATV staff representatives were not keen on the offer, saying the twists and turns at the dying station had left employees reeling and uncertain about their futures.
The fate of the company remains up in the air following the latest dispute between its court-appointed provisional liquidator Deloitte and mainland investor Si Rongbin. Both sides accuse the other of breaching terms and conditions of the last-minute deal meant to keep the ailing station on life support until April 1.
Despite plans by some of ATV’s creditors to keep the company alive even after its TV licence expires next month, it was unclear whether Wong Ching – who claims he is owed HK$1.8 billion after an incomplete deal when he sold his stake in the station to Si – would be persuaded to withdraw the petition he filed for winding up the 59-year-old broadcaster.
The petition is set for a hearing on April 13.
According to winding-up procedures in Hong Kong, a firm may negotiate with its creditors in order to reach a compromise and avoid its being wound up.