China Trends Holdings Ltd. (08171.HK), one of the creditors of Asia Television Ltd., is going all out to be a white knight for the debt-laden broadcaster, the Hong Kong Economic Journal reported Friday.
The creditor is proposing to lend ATV a further HK$500 million in an attempt to rescue it from liquidation.
The TV station, which has lost its license to broadcast in Hong Kong, has three would-be white knights. The others are businessmen Si Rongbin and Zhao Dong.
China Trends told ATV’s provisional liquidator, Deloitte, it will pay all overdue salaries once the proposal is approved.
Under the proposal, a further HK$2 billion (US$260 million) of liabilities will be swapped into equity in a dual-class structure in which only China Trends will have ordinary A shares with voting rights.
Other creditors, such as Wong Ching (also known as Wang Zheng), will have preferred B shares with no voting rights.
China Trends chairman Xiang Xin said the HK$500 million loan will be granted for operations and the company will inject its US$10 billion TV-commercial platform into the broadcaster.
Xiang said ATV may be listed in the United States after the restructuring.
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