Bermuda Venture Fund Sues Hungary
A Bermuda venture capital fund is suing the Hungarian government for political interference in awarding radio licenses, renewing doubts over press freedoms in the East Europeam nation as the government tries to convince the European Union that it respects media independence.
The 2009 tender for the frequencies of radio stations Slager and Danubius were “scandalously flawed” and amounted to the “expropriation” of investments, according to court papers filed separately by Indianapolis, Indiana-based Emmis International Holding B.V., a unit of Emmis Communications Corporation [MMS], and Bermuda-registered venture capital fund Accession Mezzanine Capital LP, which owned the stations.
Hungarian Prime Minister Viktor Orban, who took office in 2010, has come under international criticism for setting up a media regulator exclusively led by ruling party appointees with wide-ranging powers that European Commissioner Neelie Kroes has said may spawn self-censorship.
“The illegal transfer of the broadcast licenses from Slager and Danubius to politically favored persons was one of the first steps in the process of suppressing independent voices in Hungary,” said Eugene D. Gulland, a lawyer at Covington & Burling LLP, which represents the plaintiffs at the Washington- based International Center for Settlement of Investment Disputes.
Hungarian Prime Minister Viktor Orban, who took office in 2010, has come under international criticism for setting up a media regulator exclusively led by ruling party appointees with wide-ranging powers that European Commissioner Neelie Kroes has said may spawn self-censorship.
Aid talks with the EU and the International Monetary Fund have been halted over a dispute with the 27-member bloc over a series of laws passed.
The claimants and Hungary appointed arbitrators in the case on March 26 and the tribunal will hold its first session within 60 days of when the court nominates the president of a three- member panel of judges, according to the court documents obtained by the Bloomberg financial news network.
