Crisis-hit Setanta blocks new customers
Jun 11 2009 by Graeme Brown, Birmingham Post
Ailing pay-television firm Setanta has suspended all new customer subscriptions as the fate of the company hangs in the balance.
The cash-strapped Irish firm is seeking to stave off administration with a last-minute rescue.
A statement on its website said: “The company has not gone into administration. All our channels are still broadcasting across all platforms and our subscribers can continue to enjoy our programming.
“However, in the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions.”
The firm is bidding to raise fresh funds from investors with sources close to Setanta saying the board “was still reviewing all options”.
Setanta has TV rights including the FA Cup, World Cup qualifiers, Premier League and the Scottish Premier League – but is struggling to pay for them due to its low number of customers.
The firm has been looking to reduce its rights bills, raise cash from investors or even sell a stake in itself to another company, but Deloitte has been lined up as administrator if the rescue efforts fail.
Talks are under way between founders Leonard Ryan and Michael O’Rourke and its backers, private equity firms Doughty Hanson and Balderton Capital, as well as Goldman Sachs.
Setanta suffered a fresh blow yesterday when BT Vision suspended any further sales of Setanta Sports.
The home digital TV service said: “We are closely monitoring the situation with regard to the position of Setanta Sports. As a precaution we have currently suspended any further sales of Setanta Sports from this morning.”
It emerged yesterday that BSkyB had refused a £50 million lifeline to the Irish pay-TV broadcaster who are in crisis with a payment of more than £30 million due to the Premier League this week and backers refusing to advance them any more money.
Sky’s chief executive Jeremy Darroch said: “Our job is not to fund other companies. We have been talking to Setanta, and trying to work with them and help them. At the end of the day we are not a bank, we are a broadcaster.”
