ATV is likely to be saved from another winding-up action after the station repaid a HK$200 million loan and partial interest.
Brothers and former station directors Payson Cha Mou-sing and Johnson Cha Mou-daid launched the legal action in April after ATV failed to repay a loan of HK$200 million owing since August 2008 that had accumulated interest of about HK$91 million. At a hearing of the winding-up petition in the Court of First Instance yesterday, barrister Wilson Leung, for the brothers, said ATV had repaid the principal of HK$200 million last week and a cheque for part of the interest was received yesterday. He did not disclose the amount.
Mr Justice Jonathan Harris adjourned the case to Monday.
Barrister Justin Cheung, for ATV, had asked the court to finalise the dispute yesterday so that one of the firm's bank accounts, which had been frozen because of the case, could be released.
But Harris said all related matters, including clearing of the cheque, had to be finalised first.
The Cha brothers acquired the HK$200 million loan - in the form of a convertible bond - when they invested in the troubled television station in 2007. The bond matured in March.
Outside court, ATV executive director Ip Ka-po said HK$46 million in interest was paid yesterday and he was confident the winding-up petition would be dismissed once the cheque cleared. Two previous winding-up petitions - by Soft-Trek Media in 2010 over a sum of HK$2.4 million, and by Norwares Overseas in 2011 over alleged failure to hand over convertible bonds upon payment of HK$23 million - were eventually dismissed.