GTB, HiTV Row Deepens as CBS Claims Studio

The battle for the soul of HiTV, the embattled pay TV Company, owned by Hi Media  has taken a new turn as Continental Broadcasting Service (CBS), owners of Radio Continental and Television Continental, claims it owns some parts of the properties under receivership by GTB Plc, Nigeria CommunicatonsWeek can report.

CBS claimed that HiTV had signed an agreement to use part of its premises as studio for some of HiTV’s live programmes but that the pay TV Company could not meet up its part of the deal.

CBS is therefore enraged that its premises is locked up even with the judgement obtained against Hi Media for allegedly defaulting in the terms of a co-location agreement in the sum of N188 million.

The twist is coming months after GTB obtained a court order to take over HiTV for failure to discharge its outstanding indebtedness (to GTB) in the sum of N9 billion.

While not opposing the take over of HiTV by Chief Ajibola A . Aribisala (SAN), the GTB appointed receiver/manager; CBS claims that the presence of the managers on its premises is affecting the smooth running of its broadcasting businesses.

It also claims frustration at attempts to levy the execution of the judgment against Hi Media for failing in the terms of a co-location agreement

Nigeria CommunicationsWeek recalled that HiTV had last year had its operations turned over to a receiver after GTB sued it over alleged debts totaling N9 billion.

HiTV, a celebrated broadcast business module and once seen as rival Multichoice, operators of DSTV suddenly wobbled under the weight of the nation’s banking liquidity stagnation and the subsequent inability of creative entrepreneurs to access capital from banks to fund projects.

After losing the lucrative English Premier League (EPL) franchise to Multichoice, the local pay TV Company, was on course to re-vegetation through its entertainment centric programming before the GTB’s blow.

But it looks more like a case of business relations gone sour.

GTB sought and obtained a ruling against HiTV over the alleged debts at the Federal High Court sitting in Ikeja, presided over by Hon. Justice S.J. Adah on September 11, 2011.

And pursuant of the ruling a public notice by Aribisala, of A.O.S Practice, Lagos acting as ‘the Receiver/Manager’ said Hi Media Ltd has been placed in receivership due to its “failure to discharge (its) outstanding indebtedness in the sum of N9, 228, 269, 021. 00 as at November 16, 2011 in respect of credit facilities granted to it by Guaranty Trust Bank Plc.”

GTB appointed Aribisala, as “Receiver/Manager over the entire undertakings, stock, goodwill, plant and machinery, howsoever called floating and fixed assets moveable and unmovable inclusive of money and assets kept in any bank in Nigeria and/or all assets belong to Hi Media Ltd, the operator of HiTV.”

Nigeria CommunicationsWeek gathered that before the big blow on HiTV, it has had a running battle with rival Multichoice over rights infringements and won.

But then Multichoice also won the battles over broadcast rights of CNN, Discovery and EPL.

In 2010 after paying an initial deposit of $40 million over a year, it lost the EPL franchise to Multichoice for the 2011 – 2013 seasons following its inability to provide bank guaranty to the Premiership owners for the other two years.