Dear Friends:
 The
image is the doorway to the former Master Control
trailer of Eagle TV. Now,
instead of Master Control, it leads to a 10 foot
drop.
At 12:01am this morning, Eagle TV discontinued it's
broadcast operations. Because of severe disagreements
between the Mongolian and America partners, the station
was forced off the air.
This move was completely unexpected until last Friday.
Last night, we evacuated all of AMONG's broadcast
equipment and moved it to a secure location.
It all started last Wednesday when the Mongolian
partners, through their attorney sent me a letter
indicating that they were going to file a lawsuit
this week to dissolve Eagle TV and shut the operation
down. We knew that this meant that unless we removed
AMONG's assets, a baliff would come, lock the doors,
and we would stand a good chance of losing all the
equipment, even though it is legally owned, and payed
for, by AMONG. (You may be asking, "But how
can that be?" To which I say, "Trust me.
This is Mongolia.")
The following is the text of a letter to the people
of Mongolia that will appear in full page ads in
four Mongolian newspapers tomorrow. It explains the
current situation - and our hope for the future.
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TO THE PEOPLE OF MONGOLIA FROM THE MANAGEMENT OF EAGLE TV
Continuation of Operations at Eagle TV is No Longer
Feasible
Eagle TV is the oldest and most successful American-Mongol
joint venture. As recent polls have clearly shown,
more and more of you, the People of Mongolia, are turning
to Eagle TV for dynamic and unbiased coverage of news,
both local and international. Our outstanding coverage
of the Iraqi war, through our link with CNN, has brought
us thousands of new viewers. And our provocative and
informative local news programs, such as The Bottom
Line, have attracted a wide audience. And, of course,
we are leading the field in providing you with comprehensive
coverage of sporting events, both from international
sources and locally.
To date, the Eagle TV joint venture company has been
managed and operated by the American venture partner
and almost all of the equipment required to operate
Eagle TV has been leased from the American company.
Pursuant to a shareholders agreement, the Mongol venture
partner is required to pay its share of the operating
expenses of the venture company that are not covered
by operating income. To date, all of these expenses
have been paid by the American company.
In addition to its failure to pay money owed to the
joint venture company, the Mongol partner has now threatened
to bring a court action to force the liquidation of
the company. Pursuant to the Company Law of Mongolia,
the Mongol partner cannot force the liquidation of
the company without the consent of the American company.
However, the behavior of the Mongol venture partner
has made it impossible to continue Eagle TV's operations
on a rational basis. Therefore, the American company
is reluctantly consenting to the venture company's
liquidation.
The New Eagle TV
The American company is forming a new Mongol limited
liability company to be called Eagle Broadcasting Company
(EBC). The shares of EBC will initially be 100% owned
by the American company. But, soon after the new company
is in operation, up to 30% of its shares will be offered
to Mongol investors.
The American company has terminated the lease of the
operating equipment to the joint venture operating
company and will lease that same equipment to EBC.
The former management of Eagle TV will become the management
of the new company. EBC will soon apply to the Government
of Mongolia for a new license to conduct its operations.
It is the intention of the American company and the
management of EBC to resume TV broadcasting to the
People of Mongolia at the earliest possible date.
The new Eagle TV will not be the voice of any political
party. It will be the voice of you, the People of Mongolia.
We eagerly look forward to bringing you more of what
we know you crave - The best television programming
in Mongolia.
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This morning, all staff were called
into a station-wide staff meeting. As each person arrived,
they looked
into the studio and offices, and saw all of the equipment
was gone. Wiring and cabling was still dangling in
the hall from the previous night's evacuation. Needless
to say, the look on the faces of the staff was overwhelming.
As I announced the situation, read the public letter,
and revealed that everyone was being released from
their jobs - the emotions were thick. More than once
I almost lost it. To stand before 65 people and tell
them, "Good morning, the company is closing,
you're laid off" - it's something I will never
forget, and hope I never have to do ever again.
There were tears, and some anger. Everyone understood
that the Mongolian partners had forced a situation
and caused the closure of Eagle TV. One staff member,
who is also a Mongolian pastor, stood up and asked, "Who
do these people think they are that they have the power
to take away Eagle TV from Mongolia, and our jobs from
us."
My answer to him was simple: "They are the owners.
They have every right to do this; which is why it is
so imperative that we win the bid of a new licenese
to start the new Eagle TV by the end of June." Nods
all around the room followed by resolute commitments
to do whatever it will take to build a new Eagle TV.
As staff began moving furniture and equipment into
a room for the liquidation commission to review, they
talked openly among themselves, "We have to fight
this! We have to start a new Eagle. We have to tell
everyone we know what is really happening." One
person actually said, in defence of AMONG's actions, "It's
about time someone stood up to this Mongolian business
people who are always betraying people." It was
a wonderful moment for me personally, as I have been
in such emotional turmoil, knowing what was about to
come.
This weekend, I had to recruit a limited number of
staff (5) to join me in preparing the facility for
evacuation. In turn, we had to recruit another 7 staff,
and several Americans and Mongolias outside of Eagle
TV to help. This is a country where it is almost impossible
to keep a secret. Amazingly, we were able to evacuate
99% of AMONG's assets without anyone knowing about
it.
I'll never forget the reaction of Gambileg, the employee
who has been with Eagle since the first day. He was
stunned when I told him that Eagle TV would cease to
exist after Monday night. Other staff were almost in
tears. For two days, our secret staff of 5 were plagued
with severe headaches, depression, stomach cramps,
and great worry. Myself included. But we got through
it. We got through it.
Today, reporters from TV and newspapers began to figure
out what happened and came for the early scoop. Every
one of them, even from our most feared competitor all
began by saying the same thing, "This is terrible!
How could this happen? All of us as journalist feel
so terrible about what has happened to Eagle TV." So
far, the early coverage has been positive - but the
media onslaught will begin tomorrow when the letter
is released and the Mongolian partners finally get
their chance to respond.
As of today, Eagle TV does not exist. The first, and
only independent TV station in the country, and the
only Christian TV station in Asia, has been forced
off the air. We are now in the process of closing one
company, setting up another, and applying for a new
license to restart Eagle TV. Everyday during the next
several weeks will present a new challenge - and a
new hope for the future of Eagle TV.
I will let you know what happens.
God bless,
Tom Terry
General Director
Mongolian Broadcasting Company
Eagle Television
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