WE write regarding you story titled ‘Breathing Space for Channel 31’ on page 20 of WA Business News, April 10-16, concerning Channel 31 Community Education Television Ltd.
With respect, we believe that a number of points from that story require clarification, particularly regarding what was accepted and waived as a result of the Deed of Company Arrangement being accepted. In that regard, we advise as follows.
p An annexure to the Administrators Supplementary Report advised that the proposal as it stood prior to the meeting could result in a return of 17.78 cents in the dollar to creditors.
p The claim from Program Producer CTV Perth is $592,000. The directors of Channel 31 offered to accept a claim of $100,000 in the Deed of Company Arrangement proposal, however creditors resolved at the meeting to accept a variation to the proposal where no debt was admitted as owing to CTV Perth.
p Uni 31 accepted a complete discharge of the amount of $25,000 owing in respect of funds forwarded in November 1999. The balance of the Uni 31 group debt, being approximately $341,000, in respect of prepaid airtime under a broadcast agreement, will continue to be honoured during the deed and future trading of the company.
p Of the $34,077 owing in relation to the WA Trotting Association debt, $8,519 is to be deducted from future amounts payable to the company, while the remaining $25,558 is to be accepted as additional future sponsorship entitlements.
p The Deed of Company Arrangement allows for the balance of book debts collected within 90 days of the deed being executed, after administration costs, to be made available for creditors greater than $600.
p The first $8,000 received by the company in relation to public fund raising and/or on air appeals will be set aside for payment of the costs of those fund raising activities, with the next $50,000 being made available to ordinary unsecured creditors over $600. Any amount in excess of $58,000 will be split evenly between the company for working capital purposes and the ordinary unsecured creditors.
p Creditors less than $600 are to be paid by the company within three months of the Deed of Company Arrangement being executed.
p Mr George Lopez of Melsom Robson, while partner in charge of the administration, is a joint and several administrator of the company.
Carl HuxtableMelsom Robson (for the administrators)