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Astro, Lippo at odds over redress
The Lippo Group and Malaysia-based pay television operator Astro All Asia Networks Plc
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The Lippo Group and Malaysia-based pay television operator Astro All Asia Networks Plc. have not reached an agreement over how to compensate their 100,000 subscribers once Astro breaks off ties with Lippo.
The two groups have been passing responsibility for the compensation back and forth since Lippo unit PT Ayunda Prima Mitra, which has a 49 percent stake in Astro's local operator PT Direct Vision (DV), refused to take on the burden.
Ayunda's lawyer Hotman Paris Hutapea said Wednesday his client would seek a commitment from Astro.
"Astro (despite having no stake in DV) is responsible for compensating subscribers because they controlled all activities at DV," he said
Astro's local spokesman Alexander Lay said on Friday that Lippo's units in DV should take all the responsibility for compensating customers because DV had arranged the subscription agreements.
In a statement to the Malaysian stock exchange on Sept. 7, Astro announced it had given notice it would terminate its support and services to DV after refusing to renew the trademark license agreement, which expired on Aug. 31.
Astro has given DV a 30-day grace period -- which ends Sept. 30 -- to make alternative arrangements and minimize the impact on customers.
Astro said it took this action because invoices sent to DV for support and services had not been settled.
The value of the invoices amounts to approximately 805 million ringgit (US$245 million), including interest on all outstanding payments due since March 2005, according to Astro.
Hotman denied DV owed the stated amount, saying "it was an investment fund required to be paid by Astro".
"It is clearly stated on the joint venture agreement that the amount of money is an investment, not a debt. If it is a debt, Astro and DV should have signed an agreement about that," he said.
He also said Astro had financially engineered the investment as though it were a bill that had to be paid.
In the agreement, Lippo had offered to obtain a license permit, and Astro pledged to provide an investment and support DV's operations, he said. (ewd)
