CRISIS-hit pay-television firm Setanta today said it had suspended all new customer subscriptions as the fate of the company hangs in the balance.
The cash-strapped Irish firm is seeking to stave off administration with a last-minute rescue.
A statement on its website said: "The company has not gone into administration. All our channels are still broadcasting across all platforms and our sub
scribers can continue to enjoy our programming.
"However, in the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions."
The firm is bidding to raise fresh funds from investors with sources close to Setanta saying the board "was still reviewing all options".
Setanta has TV rights including the Scottish and English Premier Leagues, FA Cup, World Cup qualifiers and the Blue Square Conference – but is struggling to pay for them due to its low number of customers.
The firm has been looking to reduce its rights bills, raise cash from investors or even sell a stake in itself to another company, but Deloitte has been lined up as administrator if the rescue efforts fail.
Talks are under way between founders Leonard Ryan and Michael O'Rourke and its backers, private equity firms Doughty Hanson and Balderton Capital, as well as Goldman Sachs.
Some Scottish Premier League clubs could be forced out of business if Setanta goes into administration, according to former Hearts chairman, George Foulkes.
The Labour peer believes the situation is very serious for members of the league.
He said: "I think it puts the future of one or two SPL clubs in jeopardy. They are already struggling financially and this on top of it could be the tipping point.
"In some clubs it represents up to 20 per cent of their income and the loss of it would be really catastrophic."
Scottish Football Association chief executive Gordon Smith admitted he was concerned about the situation.
Setanta failed to pay the final instalment of this season's TV deal last week, leaving the SPL to dip into its own coffers to distribute around £3 million, the amount due, to its 12 member clubs.
Setanta suffered a fresh blow this morning as BT Vision suspended any further sales of Setanta Sports.
The home digital TV service said: "We are closely monitoring the situation with regard to the current position of Setanta Sports.
"As a precaution we have currently suspended any further sales of Setanta Sports from this morning."
It emerged yesterday that BSkyB had refused a £50 million lifeline to the Irish pay-TV broadcaster who are in crisis with a payment of more than £30 million due to the English Premier League this week and backers refusing to advance them any more money.
Another broadcaster, ESPN, is favourite to step in and take over Setanta's Premier League games if the company goes into administration.
