| MUMBAI:
HT Media Ltd (HTML) shareholders will meet on 28 January to take forward the proposal
for demerger of the radio business from subsidiary company HT Music and Entertainment
(HTME). HTME's
FM radio stations operate under the Fever FM brand. The
company said that the proposal is to write-off part of the share capital of the
demerged (HTME) company which has been eroded due to accumulate losses and utilization
of securities premium of resulting company (HTML) for the said purpose and also
to the demerger of the radio business of HTME and transfer vesting thereof into
the resulting company. "Radio
business of the demerged company has incurred substantial losses since inception
on account of low advertisement revenue, high brand building cost, delay in availability
of common infrastructure resulting in substantial investment in transmission facilities
for Delhi and Mumbai FM Radio stations... All of which have resulted in erosion
of its share capital," HT Media said. The
company told BSE today that as per the Delhi High Court order, separate meetings
of the equity shareholders, secured and unsecured creditors, will be held on 28
January. After the meeting only, the shareholders will consider, and, if thought
fit, approve with or without modification, a scheme of arrangement and restructuring
between HTML and HTME. Also,
the company is expecting that as the radio business is in consolidation and expansion
mode, it is likely to continue incurring losses in near term. Earlier
on 28 November HTML board had approved the demerger proposal. The demerger was
subject to necessary approvals and sanction of the concerned authorities and Delhi
High Court. | 
