April 11th, 2012. Lebanese Media Holding Limited (LMH) announced today that it plans to close down its PAC television production facility and operations in Lebanon.
The company cited economic reasons behind closing down the operations and in particular the refusal by LBCI to pay amounts due to LMH under production sharing arrangements between the two companies. The failure of LBCI to pay for programming produced by PAC and the ensuing disputes with the head of LBCI and former-head of PAC and Rotana TV, Mr. Pierre El Daher, have resulted in the inability of PAC to pay the salaries of its employees and continue to sustain the ongoing costs of production and operations. This includes costs and expenses which were incurred by PAC for the benefit of parties related to PAC’s previous management.
The PAC production facility, despite its prime location, diversified production facilities, multiple studios and talented production staff, has sustained significant losses for some time, many of which stem from actions and decisions taken by the previous management team.
As a result of this decision, LMH will formally commence to liquidate PAC Ltd and close down its operations in Lebanon. PAC Ltd has entered into discussions with the Ministry of Labor with regard to employee termination provisions.
LMH further announced that it is considering taking legal action to protect its rights.