FOX Networks Group Asia Sues Bangkok Bank For Failure To Pay Bank Guarantees

(RTTNews) - FOX Networks Group Asia announced Wednesday that it has filed legal actions in Hong Kong and Bangkok against The Bangkok Bank Public Co. Ltd. for failing to honor two separate bank guarantees. FOX is claiming amounts totaling over $71 million from Thailand's largest bank.

The two separate bank guarantees were for securing payments for distribution of its channels in Thailand by GMM Grammy Public Co. Ltd. and CTH Public Co. Ltd.. These were major operators of pay-TV platforms and the holders of licenses of failed digital television channels in Thailand.

Under separate channel licensing agreements with FOX signed in 2013, GMM and CTH, in aggregate, have obligations to pay FOX a principal amount in excess of $71 million and interest on late payments.

As security for payment of such amounts, the Bangkok Bank issued separate bank guarantees to FOX to guarantee each of GMM's and CTH's payment obligations. Since late 2015, Bangkok Bank has failed to comply with its guarantee obligations.

The company noted that Bangkok Bank is the largest guarantor to Thailand's digital television operators having provided bank guarantees for 14 of the 24 channels totaling more than $600 million or approximately 41% of the spectrum license fees raised.