FOX sues Bangkok Bank for alleged failure to honour bank guarantees
FOX Networks Group Asia has filed legal actions in Hong Kong and Bangkok against the Bangkok Bank Public Company Limited for allegedly failing to honor two separate bank guarantees securing payments for distribution of its channels in Thailand by GMM Grammy Public Company Limited and CTH Public Company Limited, FOX announced Wednesday.
Under separate channel licensing agreements with FOX signed in 2013, GMM and CTH have obligations to pay FOX a principal amount in excess of Bt2.5 billion and interest on late payments. As security for payment of such amounts, the Bangkok Bank issued separate bank guarantees to FOX to guarantee each of GMM’s and CTH’s payment obligations. Since late 2015, Bangkok Bank has failed to comply with its guarantee obligations, FOX said in a press statement.
“FOX has a long-standing commitment to the media industry in Thailand and to delivering the highest-quality entertainment and sports programming to our Thai viewers,” said Zubin Gandevia, President, Asia Pacific and Middle East for Fox Networks Group. “It’s a severe disappointment to us that a major Thai bank is failing to honor its guarantees, and its consequences go well beyond my own company, especially at a time of heightened sensitivity for investor confidence.”