Troubled Hong Kong broadcaster ATV plans to sell assets to pay staff

Beleaguered broadcaster ATV plans to sell off assets - including studio equipment and 30,000 costumes - to help pay the 1-1/2 months of salaries it owes its 700 employees.

Ip Ka-po, executive director of the troubled free-to-air channel, told the Post yesterday that intangible assets, such as copyright on old shows, would also go and new deals with advertisers sought in an attempt to stave off collapse.

The 57-year-old station has been at the centre of a years-long legal battle involving key shareholders and its main investor, and none are prepared to pump in more cash. News staff have threatened to walk out after tomorrow in a dispute over unpaid salaries, leaving it potentially unable to make news programmes, a breach of its licence conditions.

Staff have been promised half of last month's wages by tomorrow after ATV raised HK$7 million and Ip hopes they will get the rest early next month, but was far from certain enough would be raised to pay this month's wages. Should staff walk out, news broadcasts could be cut to just 15 minutes, he added. Bosses may mobilise staff to pressure shareholders to put money in, with a town hall meeting due today.

"We can't stop staff from taking action. They have their rights," said Ip, who loaned tens of thousands to colleagues in need. "We hope overseas TV stations or even film companies could buy our assets. But we aren't certain when we can pay the December salaries."

Staff of accounting firm Deloitte China, two of whom were appointed by a court to help manage ATV, met station employees at the Labour Department yesterday. Deloitte said it would take two months to carry out the court's instruction to find an independent buyer for a 10.57 per cent stake in the firm held by a company owned by major shareholder Wong Ben-koon.

But Ip expressed confidence a white knight would be found. He said talks with entertainment mogul Albert Yeung Sau-shing and tycoon Lui Che-woo were derailed by ATV's recent woes.