A new bidder for the long-delayed Birmingham Local TV licence has been selected by administrators - only to be rejected by regulators Ofcom.
The latest twist in the six-year campaign for Local TV in Birmingham has seen a preferred bidder earmarked by administrators Duff and Phelps and then turned down by the regulator.
The start of broadcasting by a new licence-holder after the collapse of BLTV, also known as City TV, amid debts of more than £170,000 could now be delayed for 'many months'.
The application - thought to be a consortium including former ATV presenter Mike Prince and Chris Perry of voluntary classic TV group Kaleidoscope - was deemed 'creditable and comprehensive' by Ofcom's Broadcast Licensing Committee.
But the committee later declined consent for transfer of the licence from BLTV for reasons described by Duff and Phelps as "minor points".
Administrators have asked Ofcom to reconsider and warned: "A failure to consent to the transfer application would result in significant loss of value and further delay by many months the launch.
"Consequently, the joint administrators have submitted a response to the points raised by the Broadcast Licensing Committee in determining that a transfer should not be sanctioned and requested that the BLC reconsider its decision.
"If Ofcom do not reverse their decision, they are likely to serve notice to revoke the licence. In such circumstances, no realisations will be made in the administration and there will be no return to creditors."
It is understood Ofcom's ruling that the licence had to be transferred by BLTV's original deadline of November 3 left the preferred bidder with insufficient time.
Duff and Phelps said: "After assessing, in some detail, the reasons given for the failure to consent to the transfer, the joint administrators concluded that these were not insurmountable and were for a large part, minor points."
But a well-placed source said: "The possible transfer of the licence is, quite frankly, a basket case given the timescale.
"Ofcom's view is that it needs to re-advertised after November 3 and start again with serious players."
The Duff and Phelps report says: "Five offers were received by the Joint Administrators and a detailed review of these offers was undertaken.
"On September 1 2014 the joint administrators selected the preferred bidder. This bid was selected on the basis that it was fully comprehensive and best met the current licence commitments and that broadcasting would commence on the required date of November 3 2014.
"The bidding party comprises a number of established local broadcasters who are well connected in the Birmingham area.
"If the proposed deal was completed and consideration paid in full it was likely that all creditors would be paid in full."
The Post revealed last month that the largest BLTV debt of £60,000 is owed to Bruce Drummond of Palmyra Chambers, Legh Street, Warrington.
Former long-serving Birmingham Tory Councillor Alan Rudge, who runs a law firm in the city, is owed £25,000.
Alan Grindley, who spearheaded the abortive BLTV bid in conjunction with former Birmingham City Council spin doctor Debra Davis is owed £26,900 while Nigel Sims, from Leicestershire, is owed two sums of £22,000 and £4,974.25.
An Ofcom spokesperson said: "The administrator is looking to transfer the licence to another party that could launch the service, which would require Ofcom's consent.
"If this proves not possible, Ofcom would re-advertise promptly the licence in Birmingham.
"A transfer request was made by the administrator, which Ofcom did not consent to. A further request has now been submitted by the administrator, providing new information, which we are considering."
Mike Prince, who was named earlier this year as City TV's programme controller, and Chris Perry could not be contacted for comment.
