The Office of the Permanent Secretary of the PM's Office will oppose a request from broadcaster iTV to return to arbitration over unpaid concession fees and a Bt97-billion fine.

The decision came as the broadcaster warned it might have to file for bankruptcy.

On January 4, iTV sent a statement of claims to the Arbitration Institute seeking the resolution of disputes between it and the PM's Office regarding the concession fees and a penalty for adjusting its television programming without the office's consent.

The institute accepted the statement and on January 12 submitted a copy to the PM's Office, which then had 15 days to inform the institute whether it would refuse to accept an arbitration-panel settlement.

PM's Office permanent secretary Julayuth Hiranyawisit yesterday said a letter would be sent within two days opposing iTV's plan for such a settlement.

The Office of the Permanent Secretary of the PM's Office owns iTV's broadcasting concession. Representatives of both parties will meet this week, in the words of iTV's executive chairman Niwattumrong Boonsongpaisan, to seek alternatives to the issues relating to the fine.

The broadcaster also reported to the Stock Exchange of Thailand (SET) yesterday that it was considering either borrowing or increasing its capital to meet partial payment of concession fees amounting to Bt2.21 billion, which it owes the PM's Office for the 9th, 10th and 11th years of its deal.

iTV's SET filing said its executive committee had contacted financial institutions regarding a loan and consulted with experts in the capital market to study the feasibility of a public or rights offering.

"However, the company is not able to undertake either of these within a short period, due to uncertainty over the penalty fee for adjustment of television programming, which creates a substantial risk that the company might have to file for bankruptcy," it said.

However, it is trying to find another source of funds and negotiate with the PM's Office over the guidelines for repayment.

ITV's share price closed at Bt1.11 yesterday, down from last Friday's Bt1.12. The PM's Office is demanding a fine of about Bt97 billion from iTV, based on the station's breach of its concession contract by adjusting its programming without the concession owner's consent.

iTV is 54 per cent owned by Shin Corp. In September 2002, the broadcaster appealed to an arbitration panel over its dispute with the PM's Office regarding the terms of its concession contract.

In January 2004, the arbitration panel allowed iTV to pay a lower concession fee and adjust the ratio of its news and entertainment programming by raising the entertainment content.

The PM's Office appealed to the Central Administrative Court, which last May overruled the arbitration panel's decision.

The broadcaster later appealed to the Supreme Administrative Court, which last month upheld the ruling of the lower court.

As a result, the PM's office is demanding immediate payment of the fine, plus backdated concession fees.