Fox Networks Group Asia has sued Bangkok Bank for 2.5 billion baht ($71 million) plus interest for allegedly failing to honour its guarantees securing payments for distribution of its channels by GMM Grammy and CTH pay-TV operators.
In a statement on Wednesday, the American broadcaster said it had filed the lawsuits in Bangkok and Hong Kong in relation to the broadcasting of its channels in Thailand by GMM Grammy Plc and CTH Plc.
"Under separate channel licensing agreements with Fox signed in 2013, GMM and CTH, in aggregate, have obligations to pay Fox a principal amount in excess of 2.5 billion baht and interest on late payments.
"As security for payment of such amounts, Bangkok Bank issued separate bank guarantees to Fox to guarantee each of GMM's and CTH's payment obligations. Since late 2015, Bangkok Bank has failed to comply with its guarantee obligations," its statement read.
Bangkok Bank was the largest guarantor to Thailand's digital television operators. It had provided bank guarantees for 14 of the 24 channels totalling more than 20 billion baht or 41% of the spectrum licence fees raised, it said.
Fox Networks Group Asia is 21st Century FOX’s operator of TV and cable TV. It develops, produces and distributes more than 300 wholly and majority-owned entertainment, sports and movie channels in 45 languages across Latin America, Europe, Asia and Africa.
Bangkok Bank shares (BBL) fell 0.94% to 158 baht in trade worth 1.1 billion baht at 11.48am on Wednesday compared to the broad SET index's 0.36% decline.