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