LOVASS
SCOTT
TERRY
16 -
You will recall that it is necessary for us to absorb the Rediffusion 70 million loan or there could be no dividends paid for a very long time.
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What about the sale of the building and leasing arrangements? Are these problems all to be in an
agreement?
At least there would be serious questions about continuing existence of the lease and its enforceability in any event in view of the fact that it has not at any stage governed the relationship between the parties. Not least because no rents are, but it is part of the arrangements as discussions with the whole RTV and not just with Rediffusion, that those lease arrangements would be renegotiated between the two companies. Not it is essential, quite clearly there are still some decisions to be taken and the board of RTV has to make up its mind as to location of the station in the long term and so on, and it may be that the lease will be, it will certainly be castiron from RTV's point of view for 8 years, but within that 8 year period, RTV will have opportunities to pull out if it wants to. The landlord will have no opportunities to bail out but RTV may so that I would envisage it being perhaps 3 x 3 x 2 as the way in which the lease runs, 3 years, 3 years and 2 years, to give RTV flexibility if it wants to leave that studio. But the landlord will find it is
categorically unable to be done.
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