Following days of legal battles that have revealed the extent of Asia Television's financial difficulties, the broadcaster's management has insisted that its finances are improving and losses are narrowing.

Speaking at a press conference Wednesday, ATV's Chief Executive Officer Nancy Hu Gin-Ing said losses at the company, an unlisted company with listing aspirations, are shrinking.

"ATV's financial loss last year was narrower than the year before, and its loss in the first quarter this year was narrower than the first quarter last year," said Hu, who was a well known Taiwanese actress before becoming a media executive.

She said she hopes the company can break even within two years. She added that the company will continue to pay salaries on time, and that there are no immediate plans for layoffs.

Reports from the courts this week revealed that ATV is losing up to HK$38 million every month, while the broadcaster has less than HK$30 million available in cash and credit.

Payson Cha's lawyer said legal constraints imposed by Tsai, which prevent new financing deals, could put the broadcaster out of business.

Taiwanese shareholder snack tycoon Tsai Eng-ming, Chairman of Hong Kong-listed Want Want Holdings, is suing major shareholder Payson Cha, a local property tycoon who is the chairman of HKR International, the developer of Discovery Bay.

Tsai said Cha failed to honor an agreement that would eventually allow Tsai to take control of the company.

Instead, Cha has issued convertible bonds at lower prices than agreed with Tsai, a move that diluted Tsai's control over the company.

Mainland property tycoon Wang Zheng was on the verge of buying up enough convertible bonds, which could be turned into shares, to gain control of ATV before the Taiwanese businessman turned to the courts to try to block the deal.

ATV's CEO Hu said she would not comment on matters involving the legal dispute, but said even though the shareholders have disagreements, she believes both were acting for the good of the company.

China Daily

(HK Edition 04/15/2010 page2)