iTV urged to appeal payment plans
Shareholders of iTV have asked the company to seek arbitration over its payment of fines and accrued concession payments, according to executive chairman Niwattumrong Boonsongpaisan.
A recent court ruling has ordered the company to pay the government almost Bt100 billion. Shareholders yesterday instructed management to negotiate payment alternatives with the PM's Office. They asked for a decision to either borrow or raise capital to cover Bt2.21 billion in unpaid fees for three years of its concession. That amount is the difference between payments the broadcaster made to the government and the amount required by its concession contract. Niwattumrong said iTV might need to raise Bt1 billion only because it has cash flow of Bt1 billion. He insisted iTV adjusted its annual concession fee to Bt230 million and its news-to-entertainment programme ratio to 65-35 following permission to do so by a 2003 arbitration ruling. He said the concession states arbitration rulings are binding for both the firm and the government. The PM's Office has demanded Bt97.76 billion in fines for breach of contract. That is Bt100 million for every day of the breach. The figure does not include interest. On December 13, the Supreme Administrative Court upheld a lower court decision forcing iTV to pay higher concession fees. The court agreed iTV should be subject to the full fees as stipulated in its concession with the PM's Office.
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