| Indonesian subscribers file lawsuit against Astro, PT DV |
| Business & Market 2009 | |||
| Written by Lim Shie-Lynn | |||
| Wednesday, 04 March 2009 10:43 | |||
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KUALA LUMPUR: Disgruntled subscribers of PT Direct Vision (PT DV), a unit of Indonesian conglomerate Lippo Group, have filed class action suits against Astro All Asia Networks and PT DV over terminated broadcast services after Astro ended its partnership with PT DV. In a statement yesterday, Astro said the subscribers sought an injunction to “compel Astro to continue their services and support to PT DV”. The respondents also seek damages for loss of subscription fees paid in advance, installation fees and losses due to having switched over to PT DV. “Astro is seeking the advice of its counsel as the notice of the class action suits was not properly served on Astro in accordance with Indonesian law. “In any event, Astro is not and never was a shareholder of PT DV. The responsibility of providing services to the subscribers therefore lies with PT DV whose shareholders are PT Ayunda Prima Mitra (PT APM) and Silver Concord Holdings Ltd,” it said. It added that an Indonesian court had adjourned the hearing of a particular class action suit to May 5 for the summons to be re-issued. Astro questioned the propriety of the number of inter-related litigation cases that had been filed against the company and its affiliates in different Indonesian institutions in relation to the termination of broadcast services to PT DV. “All the cases aim to achieve the same effect, restraining Astro from ceasing its services to PT DV,” said Astro’s Indonesia external legal counsel Lubis Santosa & Maulana Todung Mulya Lubis. In a civil case brought by PT APM, the firm had alleged that Astro and its affiliates had committed unlawful acts against PT APM and PT DV, Astro said. It added that the injunction was similar to one filed by former Lippo group executive Billy Sindoro. “Astro believes the claim to be unsupported by the facts and the law, and in any event Lippo is obliged to refer all disputes relating to the proposed joint venture to arbitration in Singapore as agreed by the parties. “Astro has accordingly commenced arbitration in Singapore against PT APM, PT DV and PT First Media Tbk, a major shareholder of PT APM,” it said. Astro partnered Lippo Group’s First Media in 2005 to form a pay-TV business via PT DV in Indonesia. However, Lippo’s James Riady and Astro’s Tan Sri Ananda Krishnan had a fallout after failing to reach an agreement on a restructuring of PT DV’s shareholding.
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