US chief of Bermuda cable vows he'll win legal battle
The US boss of Bermuda's cable television network last night said he was committed to the Island and would defeat a legal challenge for control of the TV company.
Bill McDonald was speaking publicly for the first time about the legal battle for control of Bermuda CableVision -- due to go before the Privy Council in England later this year.
"I think that right wins out in the long run and I think that will happen in the Privy Council.
"When all is said and done, justice will be done and we will prevail. We wanted to provide quality cable TV which we have done,'' Mr. McDonald told The Royal Gazette .
He said there was no problem regarding BCL until it started to become profitable. "Once it became profitable this other stuff started.'' The McDonald Group is fighting Colica Trust Co., a nominee company of the Bermuda Telephone Company, for control of BCL.
Colica, which bought BCL shares a few years ago, argues that its structure is in breach of Bermuda's 60/40 rule and is taking its argument to the Privy Council.
It also maintains that consultancy fees from BCL to the McDonald Group are also in breach of the 60/40 rule and succeeded last week in getting an injunction stopping the payments.
The McDonald Group claims that BCL's structure was approved by Government in 1987 when it invested about $8 million in the company allowing it to set up the cable system.
"It has all been made much more difficult by these legal events but at the end of the day justice will prevail and we will be successful in the Privy Council.
"Based on the facts I do not think we will lose. We have done nothing in violation of any law. We have done nothing to violate anyone's laws.
"We have letters from attorneys and Government saying we are legal and proper,'' said Mr. McDonald, who has had a US Senator and Congressman fighting on his behalf.
It is understood that the McDonald Group offered to have independent auditors put a price on the value of its BCL shares and offer them to Telco, but the deal was turned down.
And during a recent court case over the consultancy payments it was hinted that the McDonald Group might consider pulling out of BCL if it lost the Privy Council case.
It has also been suggested that no local group could persuade US programmers to sell programmes to Bermuda and the Island could lose the majority of its TV service if the Group pulled out of BCL.
Last night Mr. McDonald said he had made an offer to Colica and Telco, but they refused to be involved.
"I said I would buy or sell and they have refused to be involved. If you come with a fair offer I would contemplate selling.'' However he indicated that the legal row would not force him out of Bermuda and that he remained committed to the Island.
"I have built up some good value in Bermuda and I will not walk off and leave it.
"My business is running businesses successfully and creating value and that is what I was retained to do in Bermuda and that is what I have done.'' He added: "I think Bermuda has all different kinds of people and I do not think of Colica and Telco as Bermuda. They do not represent Bermudians.
"Has Bermuda treated me fairly? Certainly. I have provided a business service and they have accepted it.
"I do not understand the politics and I have no business involving myself in Bermuda politics. We know what we do and we do it well. We do run a good business in Bermuda.
"We have been successful and we have not done anything wrong. Everything has been done above the table.''
