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Q Television chairman Lloyd Fan says the gay cable channel is in the middle of restructuring and expects to resume production soon. QTN shut down its Burbank, Calif., studios and sent out an e-mail terminating all its employees on Wednesday, after it was unable to meet its payroll.

But late Friday afternoon, Fan told Sirius OutQ that the termination message was just a "standard type of form" that gets sent out in such situations. Fan said he couldn’t comment in detail because of "delicate" negotiations that are under way but that the company is "still moving forward with a restructuring" and that he expects the network will resume operations.

QTN is still continuing to transmit prerecorded programming to cable systems around the country through hired master control facilities in Texas. Fan took over the company two months ago after QTN founder Frank Olsen departed in a management shakeup. (Sirius OutQ News)