Tuesday, August 16, 2005

Train TV firm TNX TV Faces Bankruptcy

From aka.tv:

The owner of a defunct British train-TV network says it needs to raise $1m or face bankruptcy.

U.S.-based TNX Television Holdings Inc. believes it needs that sum to stay in business following the collapse of its TNX TV network in England, and plans to ask existing stockholders for the money.

The crisis, revealed in a filing to the U.S. Securities and Exchange Commission (SEC) stock-market regulator, is the culmination of months of doubt about TNX’s future.

Earlier this year the company’s wholly-owned British subsidiary TNCI UK Ltd. appointed administrative receivers to manage it while seeking agreements with creditors.

Its network on trains run by Central Trains in England’s Midlands region continued to operate, however, through a new firm – 360 Onboard Ltd., also wholly owned by TNX in the U.S.. 360 Onboard had been incorporated the previous December, according to documents filed at Britain’s Companies House.

Now 360 Onboard has also hit trouble and suspended its TV network “when it became clear that it had insufficient near-term revenue prospects to cover the ongoing cost of operations, particularly daily content procurement and delivery”, according to the TNX SEC filing. For example, on 18 July, 360 was unable to make a £28,800 payment due to the Inland Revenue, Britain’s tax authority.

All but three of 360’s employees are having their contracts of employment terminated.

There are lots of interesting details about the rise and fall of this firm, along with some insights into the cost of installing, maintaining and removing narrowcasting equipment.

Read the whole thing here.

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