ATV likely to avoid liquidation as Chinese company takes majority stake, pays HK$2.2 billion debts

But embattled broadcaster must still resolve HK$24 million owed to TVB

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Deloitte China’s Derek Lai speaking in Admiralty about ATV’s future on Tuesday. Photo: Sam Tsang

Published: 9:04pm, 25 Apr 2017Updated: 10:50pm, 25 Apr 2017

In a new twist to the sorry drama of Hong Kong’s now-defunct Asia Television (ATV), the company is likely to avoid going into liquidation as a mainland China-based “white knight” has successfully acquired its majority stake and resolved its major debts totalling about HK$2.2 billion.

However, the embattled firm still needs to resolve its remaining smaller debts with other creditors including a debt of HK$24 million owed to Television Broadcasts (TVB), before it can enjoy a new lease of life for further development.

The latest development came as new investor Star Platinum Enterprises already resolved the firm’s debt of HK$2.1 billion owed to former major shareholder Wong Ching.

Star Platinum, a subsidiary of publicly listed mainland-based firm Co-Prosperity Holdings, earlier completed the purchase of a 52.42 per cent stake in ATV via a deposit payment of HK$500 million to Wong with other undisclosed terms.

The debts of about HK$35 million in unpaid wages to 640 former employees and HK$18 million of Insolvency Fund were also paid.

The deal has made Star Platinum the majority shareholder of ATV, the city’s oldest TV station. ATV ceased broadcasting on April 1 last year after its free-to-air licence expired, following years of financial and managerial turmoil.