FOX Networks suing Bangkok Bank over TV loan guarantees

Markets Associated Press

An Asian unit of 21st Century Fox says it has launched legal action against Thailand's biggest bank for failing to honor payment guarantees it made on behalf of operators of two digital TV channels.

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FOX Networks Group Asia, a distributor of programming from the Fox Television Group, said in a statement Wednesday it acted after Bangkok Bank failed to honor two separate guarantees for payments by GMM Grammy PCL and CTH PCL for distribution of its channels in Thailand.

It said that under 5-year agreements signed in 2013, the Thai companies owed FOX more than $71 million.

Bangkok Bank responded that the guarantees applied if the Thai companies broke their contracts with FOX, but the companies said it was FOX that violated the contracts.