Following the collapse of outside broadcasting company Arena Television earlier this month, the company’s administrators are reported to have begun legal proceedings against its former directors.
The Sunday Times reports administrators Kroll filed a breach of fiduciary duty case in the High Court last week against Arena TV’s former owner and managing director, Richard Yeowart, and Robert Hopkinson, another former director.
Earlier this month, Arena confirmed to TVBEurope that it had ceased trading.
The Times‘ report claims the company’s collapse began when an auditor, acting for one of Arena TV’s lenders, attempted to verify serial numbers for company-owned equipment used as security for loans. When the auditor called the equipment suppliers, they were told the serial numbers did not exist.
It’s believed Arena borrowed around £300 million from a number of different lenders. The report adds that administrators have not been able to contact Yeowart.
Contacted by TVBEurope, the administrators declined to comment on the report.