ATV director Payson Cha Mou-sing devised a deal with Shenzhen property tycoon Wang Zheng involving the sale of shares effectively at 28 HK cents each that was 'massively profitable' to them but unattractive to the station, a court heard yesterday. Charles Manzoni QC was speaking at the Court of First Instance for Taiwanese snack tycoon Tsai Eng-meng, who has filed an injunction against Payson Cha and Johnson Cha Mou-daid conducting a share deal with Wang. Under one scheme, Wang was to purchase 36 per cent of ATV shares for HK$200 million from mainland ATV shareholders Dragon Viceroy and China Light Group at 36 cents per share. But 'that would not give him control of ATV', Manzoni said. The Chas proposed a scheme under which Wang could buy the shares also at 36 cents each. But for just HK$83 million, Wang would end up with 58 per cent of ATV shares. This would involve the Chas selling some shares at 59 cents and ATV selling some effectively at 28 cents under a convertible bonds issue. The deal, according to Manzoni, was 'massively profitable' to the Chas personally but 'unattractive to ATV'. Manzoni urged Mr Justice Aarif Barma to order an injunction against the sale of the Chas' shares to Wang, saying the deal would do irreparable harm to Tsai. If the deal went through, Wang would have control of ATV and it would be very difficult to undo. The injunction, Manzoni said, would have little effect on ATV, which was already in financial difficulties but had a loan available to it. Yesterday's arguments were part of wider litigation under which Tsai, through San Want Media Holdings, has accused the Cha brothers and others of breaching their fiduciary duties by allowing the issuing of convertible bonds that can be switched for ATV shares at 28 cents - below the minimum set in a shareholders' pact. Panfair Holdings - the Cha brothers' holding company for ATV shares - ATV director Peter Brown, Antenna Investment and ATV are defendants in the action. Court documents show Brown proposed at a board meeting on November 17 last year that ATV issue convertible bonds. But it was only after the meeting that Kevin Tsai Shao-chung, a Tsai-nominated director of Antenna, learned that the new bonds, worth HK$50 million, were convertible into ATV shares at 28 cents each. Manzoni said yesterday Cha needed to find a way to keep Panfair's share in ATV above 10 per cent. One way was by 'diluting the shareholding of Antenna by some nefarious means', and that was the scheme adopted. Godfrey Lam SC, for Panfair, the Chas and Brown, refuted the claim: 'The allegations of a scheme are nothing but the imagination of Mr Tsai.' At the time of the issue, ATV desperately needed cash because salaries were due, Lam said. 'ATV's need for funds in October and November 2009 was caused by Tsai's failure to fund ATV, as understood by all relevant parties, and Tsai,' he said. Tsai had proposed lending money to ATV, but at an 'extortionate interest rate' of 30 per cent set off against the cost of advertising time provided to him, which would have given him control. The hearing continues.