All staff members employed by FM1, operator of radio station Neo FM, resigned Monday morning with immediate effect due to unpaid wages.
The staff also cited “a situation with no future prospects created by the new owner, the existing circumstances and the owner’s future vision,” the station’s former news director Attila Berényi announced on behalf of the 26 employees.
Neo FM is one of two formerly successful commercial radio stations that were awarded to companies close to the Socialist and Fidesz parties in the fall of 2009. The other, Class FM, is linked to Fidesz.
The Media Council cancelled its contract with FM1 on June 20 due to considerable public debt and failure to produce a bank guarantee. The owner of the station challenged that ruling in court.
The court has suspended implementation of the Media Council ruling pending a final decision.
The Media Council stated on July 24 that FM1 owed a total of Ft 770 million.
New owner Mihály Medveczky bought the radio station as chief executive of Dr. M.-Media for a symbolic Ft 1 on July 3.
Berényi said the station is broadcasting pre-recorded programming until Tuesday night.
It is the goal of the owner to operate the radio station, although the present situation is no doubt a deadlock, FM1 managing director Tibor Németh responded on Monday.