Setanta 'still in business' as search for rescue deal intensifies

Published on Wednesday 10 June 2009 21:06

STRUGGLING broadcaster Setanta last night issued its first statement since its cash crisis began, confirming that company chiefs were still trying to secure a rescue package.

The Irish television firm said it was not in administration but had suspended all new customer subscriptions.

Senior management are continuing in their bid to refinance the company, which screens Premier League, FA Cup and Scottish Premier League football matches among other sports.

A statement on Setanta's website said: "Setanta Sports management and investors are in the process of attempting to secure the future of the business.

"We have not gone into administration. All of our channels are still broadcasting and our subscribers can continue to enjoy our programming.

"However, we have decided to temporarily suspend the acceptance of new subscriptions."

The broadcaster had suffered another blow earlier yesterday after BT Vision, the home digital TV service, suspended further sales of Setanta Sports.

It emerged on Tuesday that BSkyB had refused a 50 million lifeline to the Irish broadcaster which is in crisis, with a payment of more than 30 million due to the Premier League this week and backers refusing to advance any more money.

Another broadcaster, ESPN, is favourite to step in and take over Setanta's Premier League games if it goes into administration.

The firm has been looking to reduce its rights bills, raise cash from investors or even sell a stake to another company. Deloitte has been lined up as administrator if rescue efforts fail.

Meanwhile, some SPL clubs could be forced out of business if Setanta goes into administration, according to a former club chairman.

Labour peer Lord Foulkes, former chairman of Hearts, said: "I think it puts the future of one or two SPL clubs in jeopardy.

"In some clubs it represents up to 20 per cent of their income."