Reprieve possible for ITV Digital

ITV DIGITAL has a stay of execution while administrators Deloitte & Touche conduct last-ditch talks with the Football League. D&T is increasingly hopeful that a deal can be agreed to cut the cost of the broadcast contract. After weeks of tough talking, sources say the League is now taking a 'more conciliatory approach'.

Talks on Thursday night are expected to continue today. D&T is likely to reveal the outcome on Monday. The League is owed £178.5m, but D&T said ITV Digital can afford only a fraction of this amount.

It has already received 'seven or eight' expressions of interest from potential purchasers of the pay-TV business and will try to secure a sale if a deal is not reached. Otherwise, ITV Digital will be liquidated.

ITV Digital's owners Granada and Carlton have provided enough funds for the pay-TV business to keep going until Monday. Despite the crisis, Granada's chief executive Steve Morrison has been out of the country for two weeks. He is currently in New Zealand, where he spoke at an industry conference.

Some media people are speculating that it is a 'pre-retirement trip' before the well-paid executive gets ousted. 'Normal business has to go on,' said Granada. 'This business trip was planned months ago.'