Fox files legal action against BBL
FOX Networks Group Asia has filed legal actions in Hong Kong and Bangkok against Bangkok Bank for alleged failure to honour two bank guarantees securing payments for distribution of its channels in Thailand by GMM Grammy and CTH.
Both of those companies were major operators of pay-TV platforms in Thailand.
Fox stated that under separate channel-licensing agreements it signed with them in 2013, GMM and CTH, in aggregate, had obligations to pay Fox a principal amount in excess of Bt2.5 billion plus interest on late payments.
As security for payment of those amounts, Bangkok Bank issued two separate bank guarantees to Fox. Since late 2015, Bangkok Bank has failed to comply with its guarantee obligations, Fox claims.
A source at Bangkok Bank said it acknowledged the Fox legal action and that as the bank guarantor, it had obligations to pay the company. However, the payment will not be made yet because the bank is in the process of negotiations with clients over the legal procedure.
The value of collateral covers the amount involved, so this case will not have an impact on the bank’s financial status, the source said.
This case is similar to when the NBTC filed legal action against Bangkok Bank to claim the guarantee for Thai TV Co, the source said.
Digital TV has become a more risky business for the bank, and it says it is closely monitoring the situations of broadcasters for which it is guarantor.
CTH has reportedly filed a rehabilitation petition in the Central Bankruptcy Court after suffering total debts of Bt21.45 billion. In October, the court accepted the case, which was lodged by eight members of CTH’s executive committee including chief executive officer Amarit Sukhavanij and Thana Tummanon, and set the hearing for the reorganisation-petition inquiry for December 20.
Because of huge losses, CTH decided to cease its service early this year and left its customers behind. As a result, the broadcasting committee of the National Broadcasting and Telecommunications Commission (NBTC) decided to revoke CTH’s broadcasting licence.
Bangkok Bank is the largest guarantor to Thailand’s digital television operators, having provided bank guarantees for 14 of the 24 channels, totalling more than Bt20 billion or approximately 41 per cent of the spectrum licence fees raised.
Three years ago the NBTC auctioned digital television licences and raised about Bt50 billion for the state from 24 operators.
