Tara Television, whose main business is transmitting RTÉ programmes in Britain, has been wound up in the High Court. Mr Justice Brian McCracken ordered that accountant Billy O'Riordan of PricewaterhouseCoopers be appointed liquidator.
On 1 March, the High Court appointed an interim examiner to Tara, in which RTÉ has a 20% stake. The company has 20 employees and operates from rented facilities at RTÉ headquarters in Donnybrook.
Mr Justice Brian McCracken appointed the examiner after he was told that the company's liabilities exceeded its assets by over €22.8m. Loans of €18m had been advanced to Tara by United Pan-Europe, while €2.7m was advanced by RTÉ.
On 1 March, the court was told that Tara was insolvent and unable to pay its debts. This was mainly due to the amount of programming fees which RTÉ was insisting on being paid, as well as various other problems.
A draft budget for the current year indicated that Tara could survive if a number of arrangements were put in place, including a renegotiation of the level of programme fees payable to RTÉ in future.
John Breslin BL, for the three Tara directors who petitioned for the appointment of the interim examiner, said RTÉ had not changed its stance since 1 March.
Lyndon McCann BL, for RTÉ Commercial Enterprises, said Tara had incurred losses of €17m and was doomed, irrespective of whether or not a new agreement was reached.
A spokesperson for RTÉ said that the company regretted the liquidation, but said it was not possible to continue supporting Tara when there was "clear evidence that the company was insolvent and there was no viable business plan for the future".
The spokesperson also said that programming fees due to RTÉ represented only a fraction of Tara's overall losses. RTÉ also said it not received any payment in respect of programming costs since Tara started trading in 1997.
RTÉ said it would take "every step possible" to ensure alternative access to Irish programming for UK viewers.
