Hungarian Radio Station Neo FM Seeks Bankruptcy Protection

  • 19 Jun 2012 9:01 AM
Hungarian Radio Station Neo FM Seeks Bankruptcy Protection
FM1 Kommunikációs, operator of radio channel Neo FM, has sought bankruptcy protection because its short-term operations have became untenable, CEO Ádám Földes announced on Monday. “This does not mean that the station wants to leave unpaid debt or does not want to continue broadcasting,” Földes underlined.

He said the station had offered a Ft 150 million guarantee as well as a promissory note of Ft 438.9 million on Friday as it owes Ft 587 million, rather than the Ft 750 million claimed by the media authority, NMHH, Földes added.

The radio advertising market has contracted 60% in recent years and Neo FM does not get any advertising from the state or its companies, Földes pointed out.

Neo FM is the Socialist-linked station that was awarded a frequency in late 2009 as the license now used by Klassz FM was given to Fidesz-linked interests after owners of the long-running Danubius and Sláger stations were refused permission to extend their licenses.

The NMHH said it cannot accept a promissory note, only cash, adding that if Neo FM has collateral then it can convert that into cash.

“Although we are a market leader among commercial radio channels in many respects, advertisers are avoiding us,” said one of the owners, László Horváth. “Not only state-owned companies but companies which do not want to become a black sheep by advertising on Neo FM”.

Source: Hungary Around the Clock

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