At midnight on Tuesday, the Prime Minister's Office is prepared to seize the operations of debt-ridden broadcaster iTV if it fails to pay outstanding concession fees of Bt2.2 billion by that day, PM's Office permanent secretary Chulayuth Hirunyavasit said yesterday.

He said all operations would then be transferred to MCOT, which will receive 10 per cent of iTV's profits as a management fee. MCOT, 65.8 per cent owned by the Finance Ministry, operates TV Channel 9, radio channels, and Thai News Agency.

Chulayuth said no taxpayer money would be used to finance the takeover and operations of iTV. He added that MCOT had prepared Bt400 million to cover operations in the first four months, as expenses could be Bt100 million a month.

The money would then be covered by iTV's revenue, which is estimated at Bt2 billion per annum.

The PM's Office expects iTV will generate annual net profit of some Bt900 million, with operating expenses of Bt1.2 billion.

"In 2009, iTV's revenue totalled Bt2.1 billion against Bt1.45 billion in expenses. It could have reaped Bt700 million in net profit but for the Bt1-billion concession fee. iTV is a profit-making organisation. We are spending, but we will retrieve revenue shortly. While MCOT will have a share in the profits, the rest will go to the state. We're entitled to a net profit as the station will no longer need to pay a concession fee," Chulayuth said.

According to Chulayuth, iTV - which will be renamed Thai Independent Television, or TITV - will not be a subsidiary of MCOT. It will be managed by a committee to be chaired by PM's Office Minister Khunying Dhipavadee Meksawan.

The committee will select executives today to supervise iTV's operations from a pool of four or five choices. All employees who resign from iTV and join TITV will become MCOT employees and enjoy similar salaries and benefits.

"We embrace them all because the PM's Office has no manpower to run a television channel. We need experienced workers, or else the company's operations could be disrupted," Chulayuth said.

iTV's assets fall into two categories. First, the assets bought by iTV of which the PM's Office will automatically claim ownership two months after the purchase. Second, those which are rented to iTV, such as a satellite transponder lease, helicopter service and office space at Shinawatra III Building.

Chulayuth said the PM's Office had already negotiated for the further lease of office space at the building, while the Thaicom 2 satellite transponder lease will expire on May 16 and the helicopter service in September.

"All these leases are part of the Bt1.2-billion operating expenses. We don't need to pay extra for the takeover of the operations," he said.

While the PM's Office has outlined the process in taking over iTV's operations and assets, Thai Investors Association president Vichai Poolvaraluck yesterday said the association was not in the position to protect any shareholders of iTV in the event of asset seizure.

"For a month, we have warned them to reduce their portfolios and avoid the stock. Even if we receive a written complaint today, we can do nothing," he said.

iTV stock has been suspended from trading since Wednesday afternoon and the suspension will remain until its business outlook is clearer.

Many investors are trapped, having been lured to buy the stock a day earlier at a high price on rumours that the PM's Office would waive the fees and the hefty Bt100-billion fine. As of Wednesday, iTV shares closed at Bt1.05, while analysts said the stock was of no value.

A source in the industry said there was discussion among the Thai Investors Association's directors over whether retail investors should be able to file complaints against iTV's directors for mismanagement that could lead to asset seizure and delisting from the bourse.

"So far, the association has received some complaints through phone calls, but once we ask them to file a written complaint, they just disappear," the source said.

Boonklee Plangsiri and Somprasong Boonyachai have recently resigned as iTV directors, signalling that the company's shareholders have given up their fight against the state.

iTV executive chairman Niwatthamrong Boonsongpaisan said earlier this week that the company would cooperate with the government to ensure a smooth transition.

Piyanart Srivalo,

Siriporn Chanjindamanee

The Nation