The music and entertainment giant yesterday notified the Stock Exchange of Thailand in writing about this move.

In a statement signed by chief financial officer Karnsuda Sansuthi, the company agreed to file a petition to revoke the court order in the business rehabilitation case of GMM B.

On March 18, GMM B filed a petition for business rehabilitation at the Central Bankruptcy Court and the court scheduled a preliminary examination of the petition for September 6.

On April 7, GMM B and Wichai Thongtang, who holds shares in CTH, also filed a petition to request permission from the Central Bankruptcy Court for GMM B to borrow US$5.63 million from Wichai.

GMM B would use the loan to pay Uefa in accordance with the media-rights agreement for Euro 2016 and would use the payment received from Bangkok Entertainment Company and BEC Multimedia, the grantees of the right to broadcast live transmissions, reruns, and programme feeds of sporting events via BEC’s channels, for debt repayment to Wichai first.

The Central Bankruptcy Court granted permission on April 25.

CTH is a major shareholder of GMM B. In addition, according to the agreement on the Euro 2016 Qualifiers, GMM B is required to pay Uefa a licence instalment of $6 million by September 1, and GMM B planned to apply the payment received from BEC to make this payment.

In view of the above, with the permission of the court, GMM B will obtain a loan of $5.63 million from Wichai. When GMM B receives the payment of $7 million from BEC, GMM B will repay the $5.63 million to Wichai. GMM B will have only $1.36 million on hand. As a result, GMM B will then become insolvent and will not have sufficient revolving funds to pay Uefa the $6-million licence fee for the Euro Qualifiers on September 1.

Based on the reasons stated above, if GMM B fails to pay the licence fee for the Euro Qualifiers, Uefa will be entitled to request that the commercial bank that issued a letter of guarantee immediately make the payment to Uefa. If the bank does so, GMM Grammy as the guarantor of GMM B will get the damages.