ATV close to financing deal with 'well-known figure', sources say

Cash-strapped ATV is on track to reach a financing deal with a consortium led by "a well-known figure" in as soon as two days, according to staff at the free-to-air broadcaster.

The turn of events comes shortly before the Communications Authority is to rule on ATV's suitability for a renewed broadcasting licence, and after it failed to pay its staff of nearly 1,000 their latest monthly salaries.

Under the Employment Ordinance, an employer must pay wages no later than seven days after the end of the wage period, in this case meaning October 7 at the latest.

The South China Morning Post has learned that ATV could announce its new financial plan on Monday at the earliest.

"There are still some final touches to be made to the deal," a source from the station said.

Also yesterday, ATV executive director Ip Ka-po said at a company meeting that shareholdings of the station could be transferred "fairly quickly", according to staff members.

"The shareholdings stand a high chance of changing hands," Ip reportedly told employees. He was cited as saying the wages owed could be paid as soon as a deal was reached.