Pakistani broadcaster, ARY Digital UK has gone into liquidation, according to details obtained from Companies House.
Details remain sketchy on the status of the digital network, which is available on satellite and cable digital TV platforms. ARY Network UK consists of flagship channel ARY Digital (now known as ARY Entertainment), ARY News and ARY QTV.
The Companies House says that ARY Digital UK Ltd has gone into “Voluntary Creditors Liquidation” due to heavy debts. In plain English, this means ARY Digital UK Ltd has brought about this itself and is being administered by a qualified Insolvency Practitioner.
ARY Digital UK Ltd has made an agreement with its creditors by proposing a ‘composition in satisfaction of its debt’ or a ‘scheme of arrangement of its affairs’. This means an arrangement, approved by the court, in which the company has formally agreed terms with its creditors for the settlement of its debts.
ARY Digital’s debts go back many years over outstanding dues on cricket rights, which the network bought from Nimbus India. The credit files confirm that Nimbus is indeed one of the creditors.
The network’s output will remain unaffected subject to all “arrangements” being met as agreed with its creditors. It is common practice for media giants to face financial pressures such as these but how it overcomes these issues is what remains to be seen.
BizAsia.co.uk had contacted ARY Digital about this story but at the time of filing this article, we were still awaiting a response.