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INTOUCH
Shin Corporation Public Company Limited and its Subsidiaries Notes to the financial statements For the years ended 31 December 2012 and 2011 g)
Obligation under “Financing and Project Agreement” LTC, an indirect jointly-controlled entity of THAICOM, entered into a “Financing and Project Agreement” with the government of the Lao PDR (“government”) and an organisation in Germany (KfW, Frankfurt am Main) on 25 October 2004 of an amount not exceeding Euro 6.5 million (approximately Baht 267 million) for the procurement and installation of Phase VI of a rural telecommunication network. Under the agreement, the ownership of network assets will be transferred to LTC through loan at 30% of the network assets’ value excluding consulting services project, with the interest rate at 4% annum. As at 31 December 2012, LTC has recognised the network assets relating to Phase VI and the related portion of the loan in the amount of Baht 70 million (2011: Baht 70 million) and paid loan in the amount of Baht 14 million (2011: Baht 22 million).
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Significant events, disputes and litigations of INTOUCH Group !
33.1 The judgment of the Supreme Court, Criminal Division for Persons Holding Political Positions According to the judgment of the Supreme Court, Criminal Division for Persons Holding Political Positions rendered on 26 February 2010, concerns the Company and its affiliated companies in many aspects. The Company is of the opinion that the consequence of the judgment is limited to the holding that some property of the person holding political position was improperly acquired by an abuse of power while being in a political position. The judgment does not contain any order indicating that the Company or its affiliated companies shall take any actions as the Company is not involved to the case. The Company and its affiliated companies have been operating to the best of its ability in accordance with the law and the agreements and in good faith. The Company and its affiliated companies have every right available under the law and agreements to provide the facts to prove its innocence and good faith in any proceeding which may be initiated by the relevant government agencies in accordance with the law and justice.
33.2 The dispute between ITV and the PMO relating to the Operating Agreement ITV is a defendant in various legal actions, which were occurred before the revocation of the Operating Agreement, from operate a television broadcasting station that court case from doing news and trading. In the opinion of the directors, after taking appropriate legal advice, the outcome of such actions will not give rise to any significant loss. ITV has not recorded any provisions for these legal cases. 1) The progression of the dispute between ITV and the PMO! Up to the present, ITV filed two statements of claim to the Arbitration Institute as follows: 1. Case Number Black 1/2550, ITV filed the statement of claim which referred to the penalty for alteration of television programming and interest of overdue operating agreement fee. 2. Case Number Black 46/2550, ITV filed the statement of claim to the Arbitration Institute seeking an arbitral award granted by the arbitration panel to rule that the Operating Agreement terminated by the PMO was not in accordance with law and the terms of Agreement, the PMO’s claim for ITV for payment of the operating agreement fee (fraction), interest, penalty fee and value of undelivered assets was incorrect, and compensation shall be paid to ITV by the PMO.