Announcing the decision, NMHH spokeswoman Karola Kiricsi said the radio station owes Ft 600 million in license fees, and failed to deposit a Ft 150 million bank guarantee.

Neo FM bears all legal, technical and financial responsibility for the shutdown, she added.

Co-owner László Horváth pointed out that the company was shunned by state-owned companies, despite having an audience similar in size to Class FM, which receives considerable state advertising revenue.

Neo FM is the Socialist-linked station that was awarded a frequency in late 2009 after owners of the long-running Danubius and Sláger stations were refused permission to extend their licenses.

The license now used by Class FM was given to a company owned by Fidesz-linked businessman Zsolt Nyerges.

The operators of Neo FM have 30 days to legally challenge the decision.

Source: Hungary Around the Clock

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