For many years, the "yellow media" Channel C has faced financial difficulties and layoffs. This month, its parent company and related companies were accused of fraudulently obtaining a "Special 100% Loan Guarantee" from the government, amounting to HK$12 million. Company directors have been arrested, and employees have reported being owed three months' salary. Recently, it was revealed that the editorial staff of Channel C collectively owed HK$660,000 in unpaid salaries and pension contributions.
All 29 full-time and part-time employees are now in a state of suspension, leave, or resignation, and since the early hours of Wednesday (April 23), the Channel C website has not been updated.
Notice of Receivership Posted Outside Offices
Reporters from Wen Wei Po visited Channel C's old office on Tai Lin Pai Road and its new office on Wah Sing Street in Kwai Chung last night, finding notices of receivership posted outside. The notice was dated April 23, but it was not issued by the court and appears to be a document registered with the Companies Registry.
Reports cite insiders indicating that someone had previously exchanged 80% of the company's shares as collateral for several million from an investor. Subsequently, the investor initiated receivership proceedings, claiming that the company was unable to repay. Creditors informed employees that they were willing to pay HK$100,000 monthly to maintain normal operations at Channel C, but some employees questioned the sincerity of this offer, citing it as insufficient for long-term operations.
Since most editorial staff have not been paid for three months or longer, this has effectively terminated their employment contracts under the law. Consequently, all 29 employees at Channel C have either suspended work, taken leave, or resigned. The website has not been updated since midnight on April 23, and there are no longer any live reports on social media.
Channel C's parent company, Artview Media Production Limited, and another related company were previously revealed to be involved in defrauding public funds. On April 16, police launched an operation, arresting a total of six individuals (three men and three women) aged between 29 and 45, who were directors and employees of four involved and affiliated companies. They are implicated in defrauding the government of HK$20 million through the "Special 100% Loan Guarantee."
The companies involved include Manka Technical Engineering Company Limited, Artview Media Production Limited, Allong Technology Consultant Company Limited, and another company. Artview primarily operates the local online media Channel C, with HK$9 million involved in the fraud, while Allong, a related company, is implicated in over HK$3 million of fraud. Four individuals from these companies are suspected of conspiracy to commit fraud, including a 45-year-old man surnamed Chan and his 35-year-old wife, a female employee from a logistics company they own, and a 29-year-old female director from Artview.
Reportedly, Chan is one of the users of Artview's bank account and a director of Allong and three other companies, including a logistics company co-owned with his wife. Police suspect Chan is the actual controller of Channel C.
It is understood that funds from other affiliated companies' bank accounts were transferred to the loan applicant, inflating revenue for three months. After that period, the transfers ceased, creating the illusion of a revenue drop of over 30% to meet the requirements for the "Special 100% Loan Guarantee." Investigations revealed that these transfers did not involve actual operations, and the loans were not used to pay employee salaries.
Records indicate that Channel C has repeatedly reported financial shortfalls, including a statement in June 2023 that the company had funds to operate for only one month, calling on readers for paid subscriptions and crowdfunding. Reports have disclosed that Channel C has not only owed employee salaries and laid off staff but also faced chaotic financial management, with former employees having taken legal action to recover owed wages.
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