Former ATV presenter Mike Prince is set to become the face of local TV in Birmingham – with new station Kaleidoscope TV.

A consortium spearheaded by Mr Prince, linked to the project earlier this year, has been awarded the licence in the wake of the financial collapse of former licence holder BLTV amid debts of £170,000.

His consortium has been given a deadline of February 28 to have the station up and running after regulator Ofcom agreed to a transfer of the licence. It originally awarded the right to broadcast to City TV in November 2012.

But the venture, headed by former Birmingham City Council spin doctor Debra Davis and associate Alan Grindley, never got off the ground despite a string of promises.

BLTV, parent company of City TV, collapsed into administration in August.

Ofcom said in a statement that its broadcast licensing committee had agreed to a transfer after approving Kaleidoscope's business plan.

The statement added: "The committee considered the financial position of the proposed transferee and its business plan, in order to be satisfied it could launch and sustain the service.

"(It) considered the business plan put forward was sustainable for the Birmingham licence, subject to the initial funding being raised.

"Following clarifications from the administrator, the committee was satisfied the proposed transferee would have the initial funds required to launch the service.

"To account for the delay resulting from Ofcom's consideration of the request, Ofcom has decided to allow Kaleidoscope up to February 28, 2015 to launch the service.

"The licence transfer will be processed by Ofcom and the re-issued licence published. Kaleidoscope TV Limited is required to begin broadcasting on the new commencement date."

Ofcom said the Prince proposal "sufficiently demonstrated that the proposed transferee would meet all the programming commitments".

It added: "In particular, the broadcast licensing committee noted the specific assurances that had been given relating to live news coverage."

Andrew Taylor, head of corporate recovery at law firm Shakespeares who has been advising the administrators, said: "This a win-win for digital broadcasting in the region. We are delighted that Ofcom recognises the care and attention given to this bid and has decided to back it.

"This decision has unlocked the process and means we can now proceed with the transfer of the 'licence to broadcast' to Kaleidoscope TV.

"These discussions are already well underway and we will continue to work closely with the administrators to ensure that the new licence holder is able to begin broadcasting as soon as possible."