A company which ran digital cable television ABNxcess, launched by former prime minister Najib Razak in 2013, is selling its assets through an auction to pay off creditors.
The company, Asian Broadcasting Network (ABN) Sdn Bhd – formerly known as Nilamas Corporation Sdn Bhd – was backed by Kenneth Eswaran.
The businessman is said to have close ties with Najib and his family, which helped him get fast approval for the required licences, an industry source told the now-defunct The Malaysian Insider news portal in 2011.
When it started, ABN marketed itself as a serious rival to Astro in the pay-TV sector and had projected spending upwards to RM2 billion to compete for a share of the local market. ABNxcess had 52 channels, with programmes mostly from India and China.
When Najib launched ABNxcess, he said the service would “signify a new era in information and entertainment dissemination across the country” and bridge the digital divide for all Malaysians.
But ABN fell into financial trouble, failing to pay salaries on time and make payments to installers and service contractors. The digital cable television services provider reportedly has not posted any revenue since 2009.
In 2015, it shut down its news division, taking ABN News off air and its news portals offline, as well as closing its news broadcast studio unit.
ABN’s debt was estimated at RM400 million last year, with about half owing to Bank Pembangunan Berhad. The loan was approved in early 2013.
The rest of the debt was owed to some other 100 creditors, which were smaller companies.
Last year, electric and electronic goods manufacturer Sony (M) Sdn Bhd obtained a court order to wind up ABN to liquidate its assets.
Other companies seeking money back from ABN via the winding-up petition were ARRIS Solution Inc, ARRIS Technology Inc, ARRIS Solution Malaysia Sdn Bhd, MaxNet Enterprise Sdn Bhd, Gentlelite Electrical Sdn Bhd, Pixel Softek Sdn Bhd and Janacon Trading Sdn Bhd.
Based on an auction advertisement posted in local newspapers, ABN is now selling 22 satellite antennas, network components, studio equipment like camera sets, control panels, switch panels, broadcasting racks and cables.
The advertisement also stated that more information on the assets and the terms and conditions of the sale is available at RM100 per copy and those interested are to contact the receivers and managers at audit and assurance firm BDO Consulting Sdn Bhd.
All offers must reach the receivers and managers by 3pm on January 18. – TMI