New managers of Hong Kong broadcaster ATV see tough road ahead

The two new managers of troubled Hong Kong broadcaster Asia Television (ATV) have promised to do their best in finding investors for the station, and securing additional funds to pay outstanding salaries owed to employees.

The television station’s news department has issued an ultimatum, threatening a strike if it fails to pay them overdue salaries by December 31.

Derek Lai, southern region managing partner of Deloitte China and one of ATV's new managers, said the worst case scenario would be for ATV to have its licence revoked and go bankrupt as no buyers would be interested in a broadcaster without a licence. According the licence terms, ATV must provide a news service, he added.

Along with Lai, Darach Haughey, principal in charge of restructuring services at the same accounting firm, was also appointed to manage ATV as the result of a High Court order. The court order requires the pair to find an independent company to buy 10.75 per cent of ATV's shares from Panfair Holdings, a company controlled by the station's majority shareholder Wong Ben-koon. They will also need to search for a new chief executive for the station.

“I can’t guarantee that I will be able to find a white knight,” Lai said. “We have just been appointed, and haven’t contacted the list of ideal candidates yet”.

"White knight" is business jargon for a friendly investor who acquires a corporation at a fair price with the support of the corporation’s board of directors and management.