29 March 2024 The Irish Film & Television Network
     
Liquidator Appointed to Tara TV
22 Mar 2002 :
In the High Court on Tuesday afternoon (19 March), Mr. Justice McCracken appointed Billy O'Riordan of PricewaterhouseCooper as liquidator of Tara TV. The company is 80% owned by United Pan Communications NV (UPC) and 20% by RTE Commercial Enterprises (RTE CEL).

The appointment of a liquidator followed the withdrawal by Tara TV of a request, on behalf of UPC nominees to the board of the company, for the appointment of an examiner made to the High Court on 28 February of this year.

RTE regrets the liquidation of Tara TV, a company it has supported since 1997, when it entered into a joint venture with UPC. It was not possible to continue the support when there was clear evidence that the company was insolvent and there was no viable business plan for the future. RTE has a duty to act in its own best interests and to ensure that its public funding is carefully and prudently deployed.

The liquidation will result in personal losses for the employees of Tara TV and the loss of access to Irish programming for the small but loyal and committed group of viewers that the channel attracted. As soon as possible RTE will take every step possible to ensure alternative access to Irish programming for viewers in the UK, at an affordable price.

Liquidation of Tara TV

1. The effect of Tara TV's failure to generate anticipated revenues could be seen from the audited accounts for 1998 - 2000 inclusive

Year - 1998
Turnover - IR£,477,000
Operating Loss - IR£4,369,000

Year - 1999
Turnover - IR£744,000
Operating Loss - IR£5,000,000

Year - 2000
Turnover - IR£1,876,000
Operating Loss - IR£2,070,000

Every year the Company has made an operating loss. Its income is too low and its costs and overheads are too high. The retained loss as per the profit and loss account stands at nearly IR£18 million.

2. The liquidator will have to address the standing of a letter of support given by UPC, for each of the last three financial years in respect of which accounts have been audited, to the directors of Tara TV for the purpose of allowing them to continue trading.

3. During Tara TV's entire trading life, RTE (CEL) has not received any payment in respect of programming costs. Indeed, it is of note that until 2000 the Company did not even earn enough revenue to enable RTE (CEL) to raise an invoice under the Programming Agreement.

4. The total direct investment by CEL is STG£2,304,514 and not STG£1,672,573 as indicated by UPC when the interim examiner was sought. The figure of STG£2,304,514 includes an amount of STG£481,941 due to RTE (CEL) in respect of programming fees for 2000 and which RTE (CEL) agreed to convert into a shareholder's loan. This was done in an attempt to bolster the precarious financial position of the Company.

5. UPC nominees suggested in seeking examinership that the insolvency of Tara TV was in some way related to the programming fees payable to RTE (CEL). In actual fact, however, the programming fees which are payable to RTE (CEL) amount to IR£1,631,000 and are only a fraction of the overall losses. These programmes also provided the basis by which revenues of IR£6,348,000 have been earned in the same period





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