Lapsed broadcasting company iTV yesterday asked the Stock Exchange of Thailand (SET) for another six months to consider its future so it could submit a business plan to avoid being delisted.

The request follows the expiry this past Sunday of a 30-day period earlier set by the bourse for iTV to provide a business plan to avoid delisting.

Last month, the Prime Minister's Office cancelled iTV's broadcasting licence and took control of the TV station and its assets after the company failed to pay Bt100 billion in fines for violating its concession contract and for part-payment of concession fees.

According to stock exchange regulations, a listed company whose core business faces serious problems can be delisted. SET president Patareeya Benjapholchai said yesterday the bourse will consider iTV's request for additional time. If the company has a proposal that benefits retail investors and allows the company to further run its operations, the SET will help oversee and support iTV's new business.

"Today is the last day [on which] iTV can inform the SET of its plans. The company has informed us already, but I haven't seen the details. But we will help oversee anything that benefits shareholders," she said.

In a statement delivered to the SET yesterday, iTV director Somkid Wangcherdchuwong requested six months' extension for iTV to present plans covering the criteria and procedures to avoid delisting.

The company, which maintains that the penalties and part-payment of concession fees failed to comply with either the Concession Agreement or the law, explained it is unable to determine its actual level of debt, or to foresee whether it still needs to pay the penalty fee and part of the concession fee to the Prime Minister's Office (PMO).

It has filed a statement of claims with the Arbitration Institute seeking a ruling that the company has not breached its Concession Agreement and that the Prime Minister's Office is not entitled to claim either the penalty or unpaid portions of concession fees.

iTV's statement of claims has been accepted by the Arbitration Institute and consideration of the case is proceeding.

Consequently, the company needs more time to await the Arbitration Institute's decision as this is essential to planning for criteria to avoid the delisting problem, iTV said.

The company also cited the termination of the Concession Agreement as a further reason for its needing more time.

It said the Prime Minister's Office used iTV's failure to pay the penalty fee and part of the concession fee as a reason to terminate its Concession Agreement on March 7, 2007, despite the fact that both issues were, at that time, in dispute and in a process of arbitration.

The company said it is currently considering its legal position with regard to possible action against the Prime Minister's Office and related people, to indemnify the company against damages incurred in what it called "illegal processes".

Moveover, in the light of uncertain outcome from all this action, iTV is considering carrying on with new business, should it no longer be able to operate as a UHF television broadcaster.

It is examining the business of two subsidiaries - Artware Media, which rents equipment for radio and television productions, produces television programmes, acquires movie rights and arranges marketing events, and Media Connex, which arranges advertising and content for mobile phone operators. Consideration of these operations will take iTV's management team some time, the company said.

In addition, iTV said its study of rehabilitation plans includes capital procurement from foreign and local investors.

It will take "a period of time" to consider the pros and cons carefully so that rehabilitation will be most useful to the company and its shareholders, iTV said.

Siriporn Chanjindamanee

The Nation