City TV enters administration

BIRMINGHAM’S much-heralded City TV local television station has entered administration after failing to secure sufficient investment to enable it to begin broadcasting.

Media watchers had been viewing developments at the station with interest for some time as the launch date for it to begin broadcasting was pushed back several times.

Despite not having a studio or any equipment, the station – one of the first new digital terrestrial licence in November 2012 – had been due to begin broadcasts in early November. It had been initially scheduled for launch mid 2014, using Channel 8 Freeview.

BLTV, the company responsible for the station, is headed by CEO Debra Davis, former communications chief at Birmingham City Council. She was overseeing the business, its strategic partnerships, commercial development and corporate structure.

The terms of the licence would have enabled the station to serve 1.2m households and reach a potential 2.3m audience within Birmingham, Walsall, Dudley and parts of Wolverhampton.

The station had been due to broadcast a selection of local news, sport, culture and entertainment.

In a statement, Ms Davis said: “It is with great regret that BLTV, City8, has gone into administration. There were plans being negotiated to rescue the company but, as I understand, creditors rejected early conversations in favour of proceeding with their application.

“There are a number of factors which led to this. But we need to look ahead. I am confident that administrators will work towards a solution and I have offered them my support as the Company Director.

“Jeremy Hunt, former Secretary of State for DCMS, had an ambition to bring truly local television to the UK. This is so important to towns and cities across the country – especially outside the M25. I am saddened that we couldn’t help deliver that vision but it is one that I believe would make a game-changing difference to a lot of communities and local interests.”

She later added on Facebook that it was better to have tried and failed than not to have tried at all.

Matt Ingram and John Whitfield, partners in the Birmingham office of Duff & Phelps, have been appointed joint administrators of the company.

The administrators have approached a number of other local TV licence holders informing them of a potential business opportunity.

Andrew Taylor, head of corporate recovery at law firm Shakespeares, has been acting for a number of creditors involved in the City TV project and will now work with the administrators.

He said: “Placing City TV in administration is a positive step forward for the existing creditors who stand to gain nothing from their investment unless an interested buyer can be found. Interest in the local TV station is already high and the project seems to have captured the imagination. All involved are hoping to have more positive news to communicate before too long.”

Approval for any change of licence would have to be conferred by watchdog, Ofcom.

It is understood there has been interest from other companies about taking over the licence with a number of names suggested.

Reports have said Made TV, which is chaired by former BSkyB executive and Top Up TV co-founder Ian West, and includes former Emap chief executive Tom Moloney as a director, is one while That’s Media, which includes former That’s Life presenter Esther Ranzen and which has secured six other licences in the south of England, is another.