Lebanese Media Holding Limited (LMH) announced today that it plans to close down its PAC television production facility and operations in Lebanon.
The company issued a press release that cited economic reasons behind closing down the operations and in particular the refusal by Lebanese Broadcasting Company International (LBCI ), to pay amounts due to LMH under production sharing agreements 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 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", LMH press release included.
The company added, "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".
Finally, LMH said it "will formally commence to liquidate PAC Ltd and close down its operations in Lebanon. PAC Ltd has entered into discussions with the Ministry of Labour with regard to employee termination provisions".
For its part, the Lebanese Forces Party, which is in dispute with Sheikh Pierre Daher over the ownership of LBC, has condemned what is happening to the corporation's employees working in PAC Ltd unit in Lebanon.
The party called for the Lebanese government, particularly the Justice and Labour ministries to halt this procedure and insure protection of employees' rights, untill the conflict concerning the corporation's ownership is settled.