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Bangkok Post

By Bangkok Post, Thailand

Feb. 27--Boonklee Plangsiri, considered the right-hand man of Shin Corp founder and ousted premier Thaksin Shinawatra, has stepped down as the chairman of iTV as the company faces an unpredictable future.

The troubled broadcaster is currently facing possible bankruptcy from state fines of up to 100 billion baht for alleged concession violations.

Niwattumrong Boonsongpaisan, a director of iTV Plc said yesterday that the board had approved the resignations of Mr Boonklee and Weerawong Chittmittrapap, a director and the member of the audit committee.

Anan Leetrakul has been named chairman of the board and of the audit committee, effective immediately.

The board also approved the omission of a dividends for fiscal 2006, citing its accumulated loss.

iTV posted a net loss of 1.78 billion baht last year against a net profit of 679 million in 2005. Revenue last year declined by 7.9 percent to 2.16 billion baht.

The company attributed the revenue decrease mainly to intensified competition for television advertising, the uncertain political environment and general economic slowdown.

As well, since mid-2006 the company has been affected by uncertainty about its programming schedule, which has caused some clients to delay advertising purchase decisions.

The company reported its concession fee for 2006 at 2.506 billion baht, a significant increase from 230 million in 2005, reflecting the accrued differences in concession fees payable for the period from 2004 to 2006 plus interest.

The actions were taken in accordance with a Supreme Administrative Court ruling on Dec 13, 2006. It upheld a Central Administrative Court revocation of an arbitration award dated Jan 30, 2004.

In addition to being liable for higher concession fees, iTV has been ordered to restore its ratio of news to entertainment programming to 70:30, in line with the terms of its original concession from the Prime Minister's Office, from 50:50.

The company is facing difficulty securing the funding to repay the difference in the unpaid concession fee totalling 2.21 billion baht plus interest of 15 percent per year. On Jan 4 it submitted a case contesting the amount to an arbitration panel but no ruling has been made yet.

M.R. Pridiyathorn Devakula, the finance minister and deputy prime minister, said the cabinet would consider iTV's proposal to repay debts when it meets today.

iTV has proposed five options: installment payments; converting debts to equity to be acquired by the PM's Office; finding private companies to acquire Shin Corp's stake; making a partial repayment and repaying the rest with equity; or returning the TV concession.

ITV shares closed yesterday on the Stock Exchange of Thailand at 0.94 baht, up one satang, in trade worth 3.91 million baht.

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