The private Pakistani satellite television channel, ARY Digital is in deep
financial trouble. The company behind the brand recently slid into
administration, leaving employees (journalists and technical staff) helpless and
aghast.
ARY Digital TV, broadcasts 3 Asian satellite television channels using Sky
television platform in England, ARY News, QTV, and ARY Digital. The company (ARY
Digital UK Limited) commenced trading on 9th April 1999 (company registered
number 03749889). By July 2011, it owed over �3,500,000.00 (GBP) to various
creditors including some well known industry names.
What appears really odd is that the company, now in administration, terminated
arrangements with its employees, but later (unbeknown to them) those same
employees were hired by a similarly sounding company: ARY Network Limited.
This new company was incorporated on 1st December 2010 (company registered no.
07456134). Administrators were appointed to deal with the affairs of ARY Digital
UK Limited due to the disastrous financial situation the company found itself
in. Matters were dealt with at the High Court of Justice, Chancery Division,
London and the company was placed into administration on the 19th May 2011,
(case number No 4172 of 2011).
It is surprising that the assets of ARY Digital UK Limited were sold by private
treaty to ARY Network Limited on the 31st May 2011. It is noteworthy that two of
the directors of the two companies are brothers.
One of the directors of ARY Network Limited, Mr Muhammed Yaqoob Iqbal is the
father of Salman Iqbal, a director of ARY Digital UK Limited. It appears that
company assets have simply been passed between family members whilst countless
creditors and employees are unaware of this private arrangement.
The employees at ARY�s media station are completely outraged as they feel they
have been cheated and denied basic employment rights as they did not even know
of the changes being made by management. Some salaries have not been paid for
almost a year.
The dire financial mismanagement came to light a few months ago when the ARY
engaged in a costly advertising campaign to launch a weekly newspaper called
�The Bridge�. Despite the allegedly huge costs incurred, no publication was ever
released and it appears that the newspaper�s editorial team have now been forced
from office. No explanation has ever been given.
The company had promised to launch the newspaper in Pakistan and the UK but
failed on both attempts. It is unclear what strategy was at work and why one
company was forced to incur exorbitant marketing/advertising costs given there
has not been a single publication to date.
Reliable sources within the channel have cited unrest and anger among the
employees who find themselves now being employed by the new company. According
to a senior insider, professional trade unions are now set to step in and a
legal battle will ensue by those wanting to protect themselves from the
adventures of the owners.
It seems however if the old ARY has been put in to administration and the
employees have suddenly found that the label has been changed and a new ARY has
taken over (albeit under the control of the brother) the staff may have to ask
the authorities to investigate matters further.
When the company was set up, the first directors were Jawaid Pasha, Yasir Pasha
and Zain Pasha who (for reasons unknown) all resigned abruptly on 13th October
2000. It was on that date, Mr Muhammed Yaqoob Iqbal and Salman Iqbal were
appointed as directors. Even Mr Asif Iqbal (the former cricketer) was a director
at one point as was Barbara Kahan although their positions have since been
terminated.
Records at Companies House (the government agency for all companies in England
and Wales) makes it clear that the principal activity of the company to June
2006 was to produce and broadcast television programmes for the Asian community
in the UK and Europe. It cites, the company having �suffered material losses
whilst carrying out this activity�.
Those losses were financed and underwritten by its shareholders as well as loans
from sponsors. It goes on to state: �Due to heavy trading losses 5 years ago,
the company entered into an agreement with one of its (family) associated
company�s�. Therefore, its current activity is that of sales and marketing for 3
satellite television stations for the Asian market in the UK and Europe.� "�The
Company suffered bad debts on a regular basis which created cash flow problems��
The papers submitted by the ARY owners, state the company directors felt the
company may not be able to trade through the difficult financial period. Rather
than risk whatever little assets the company owned and further expose itself to
trade creditors they felt the company should be placed in to administration to
protect its position and therein its assets.
Mekaal Hassan