The Flood Tribunal has heard that Century Radio's financial projections were "wildly inaccurate". The Tribunal is hearing evidence from the station's bankers about credit facilities they gave Century. Witnesses from the Bank of Ireland said that it appeared that Century had got their marketing strategy wrong and did not attract the listenership they had anticipated.
Earlier a bank official said the station would have been considered a lost cause just months after opening if it had not been for the promise of legislation to cap RTÉ's advertising revenue. Century directors had told their bankers that its financial position would improve when the legislation was introduced. Eamon Gallagher said that Century was using the pending legislation to buy time with the bank. The bank had frozen Century's facilities when it got into severe financial difficulties in 1990.
Century's directors had assured the bank their position would improve greatly when the Government introduced the legislation. The bank was also told the cap might have closed down what was then RTÉ Radio 2.
