THE PARENT company of Channel 6, the TV station acquired by TV3 last month in a deal believed to be worth up to €12 million, had retained losses of €11.4 million at the end of 2007.

The information is included in accounts filed by Kish Media, the company that controls Channel 6 Broadcasting Ltd and Baily Television Ltd. The latter company holds the broadcasting licence that Channel 6 was awarded by the Broadcasting Commission of Ireland.

Notes to Kish Media's 2007 accounts, which have just been filed with the Companies Office, state that it incurred start-up costs during 2006. "The directors have obtained a significant amount of working capital funding during the period," it says.

Channel 6 raised more than €14 million from private backers, including the Barry tea family in Cork, Senator Feargal Quinn and venture capitalists ACT and Delta.

The accounts state that the directors of Kish Media, Channel 6 founder and chief executive Michael Murphy, venture capitalists Maurice Roche and Walter Hobbs and advertising executive Pat Donnelly, "have not received confirmation that financial support will be forthcoming from the shareholders of the company".

As a result, they say "it is uncertain that the group will be in a position to continue trading for the next 12 months".

Channel 6 Broadcasting had a deficit of €10.5 million at the end of 2007, according to its own filings.

Channel 6 had previously received loans amounting to €11.3 million from Kish. It received additional loans amounting to €3.2 million during 2006, bringing the total owed to €14.5 million. No repayments were made to Kish during 2007.

The loans are described as "unsecured, interest free and repayable not earlier than January 1st, 2009".

Channel 6 was acquired by TV3 last month. Although no financial details were disclosed, it is estimated that €2 million to €3 million may have changed hands. Earn-out clauses in the deal would see Channel 6 shareholders get a payout of €10-€12 million if TV3 turns a profit on the channel.