GCLA.L Regulatory News (GCLA)

18 Dec 2009 10:00



18 December 2009

GRUPO CLARIN S.A.

Argentine Federal Judge Issues Injunction

Suspending Application of Certain Sections of New Media Law

On 17 December 2009, Grupo Clarín S.A. (the "Company") informed the Argentine Securities Commission ("CNV") that on 7 December 2009, the Federal Civil and Commercial Court No. 1, Secretariat No. 1, issued an injunction in re "Grupo Clarín S.A. and others, about Injunctions" (File No. 8836/09), suspending the application of Sections 41 and 161 of Audiovisual Communication Services Law No. 26,522 (the "Media Law"). The federal court's decision was notified to the Argentine Cabinet Chief on 15 December 2009.

Attached hereto are free translations of the relevant provisions of the injunction and of Sections 41 and 161 of the Media Law. 

Enquiries:

In Buenos Aires:

Alfredo Marín/

M. Julia Díaz Ardaya/Alejandro Yu

Grupo Clarín

Email: investors@grupoclarin.com

In London:

Alex Money/Lorna Ellen

Temple Bar Advisory

Tel: +44 20 7002 1080

Email: clarin@templebaradvisory.com

In New York:

Melanie Carpenter/Peter Majeski

I-advize Corporate Communications

Tel: +1 212 406 3692

Email: clarin@i-advize.com

  FREE TRANSLATION

National Judicial Branch

File No. 8836/09, "Grupo Clarín S.A. and others, about Injunctions"

Buenos Aires, 7 December 2009

[Recitals Intentionally Omitted]

"Therefore, without advancing any opinion about the substantive matter, having verified satisfaction of all requirements for the granting of the injunction requested, and subject to the prior recognizance that the petitioner shall make before the Clerk, I HEREBY DECIDE: to grant the injunction requested, ordering the provisional suspension, in relation to the plaintiff, of the application of sections 41 and 161 of Audiovisual Communication Services Law No. 26,522. Customary notices shall be served through the corresponding Ministry (Section 3º, Law No. 3,952).

[…]

Signed: Edmundo J. Carbone, Federal Judge

  FREE TRANSLATION [footnotes omitted]

AUDIOVISUAL COMMUNICATION SERVICES

LAW NO. 26,522

Regulating Audiovisual Communication Services throughout the territory of the Republic of Argentina

Approved: 10 October 2009

Enacted: 10 October 2009

[…]

SECTION 41 - License transfers. Audiovisual communication service authorisations and licenses are not transferable.

Exceptionally, authorisation is granted to the transfer of shares or partnership interests in the licenses [sic] after the fifth anniversary of the term of the license and when such transaction is necessary for the continuity of the service, subject to the maintenance by the original holders of the license of more than fifty per cent (50%) of paid-in or to-be-paid-in capital, and representing more than fifty per cent (50%) of the corporate will. Such transfer shall be subject to prior verification by the implementing authority, which shall issue a grounded resolution authorising or rejecting the requested transfer, taking into account the fulfilment of the requirements for its award and the maintenance of the conditions that motivated such award.

Any transfers made without due and prior approval shall be punished with the statutory revocation of the license and shall be absolutely null and void.

Non-profit entities. Licenses awarded to private non-profit providers are not transferable.

[…]

SECTION 161 - Adjustment. The holders of licenses relating to services and registers regulated hereunder, which at the time of this act's enactment do not meet or fulfil the requirements provided herein, or the entities that at the time of entry into force of this act hold a greater number of licenses or have a corporate composition that is different from that allowed hereunder, shall adjust to the provisions hereof within a term of no more than one (1) year after the implementing authority has established the transition mechanisms. Upon expiration of such term, [such holders or entities] will be subject to the measures applicable-in each case-to breaches hereof.

Only for purposes of the adjustment provided hereunder, license transfers shall be permitted. The last paragraph of Section 41 will apply.