The firm signed a statement of solvency although Mark Nicholas Media was owed more than £1m by a related company, The Media Brokerage, which was insolvent.
Granada, which produces soap opera Coronation Street, then continued providing advertising airtime on credit to Mark Nicholas Media, losing £29,834.66 which it has no chance of recovering after the company went into liquidation, according to a High Court writ.
The Media Brokerage also went into liquidation on 8 April 1999, owing more than £1m to Mark Nicholas Media, the writ says.
Now ITV and Granada are suing Gibson Booth for damages and interest. They claim the firm was negligent and in breach of duty by failing to exercise any care over the statement of solvency, and in providing audited accounts for the year ended April 1998. Additionally, it should have know The Media Brokerage was insolvent and owed Mark Nicholas Media £1.3m.
A spokesman for Gibson Booth said it planned to file a defence in due course.
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