ITV sues STV for £38 million debt

ITV has launched legal proceedings against the Scottish franchise STV to recover a £38 million debt.

The commercial broadcaster released a statement saying the debt has accumulated because STV failed to comply with its contractual obligations to contribute to the network’s programming budget.

“STV is attempting retrospectively to opt out of an increasing number of peaktime programmes which contravenes existing agreements,” the statement said.

“The company is also wrongly attempting to claim a rebate against programmes which have been ‘written off’.  We are currently withholding monies from STV against this debt and currently believe the net debt is approximately £15 to £20 million.”

ITV also said that it has been trying to resolve the issue with the Scottish broadcaster for more than a year, although “efforts have been unsuccessful”.

“Given that we are a commercial organisation, with responsibilities to our shareholders, we are left with no option but to take legal action to recover this sizeable debt,” ITV said.

In recent months, STV has decided to opt out of broadcasting ITV programming, cutting almost all of the network’s upcoming autumn drama schedule, including The Bill, Blue Murder, Wuthering Heights and Midsomer Murders.