Ten’s troubles worsen

Commonwealth Bank primed to call in receivers

NETWORK Ten is to be put in receivership as the besieged broadcaster’s woes dramatically intensify.

It is believed insolvency specialist PPB Advisory will act for the Commonwealth Bank, which is the broadcaster’s biggest lender.

The revelation comes after a meeting of creditors of the besieged free-to-air broadcaster today, but has not been triggered by that meeting.

Ten has a $200 million debt facility — effectively a line of credit — from the bank that is due to expire on December 23.

That debt facility was guaranteed by high-profile Ten investors James Packer, Lachlan Murdoch and Bruce Gordon, the owner of regional broadcasting heavyweight Win.

Ten fell into administration earlier this month after the key investors failed to offer their support for a new debt facility that would kick in when the existing one expires.

It is not known how much debt facility Ten has left to draw on, but it is believed the CBA has appointed PPB as receivers to better protect its interests during the administration process.

While the receivership move will not effect Ten’s ability to keep broadcasting in the short term, complicates process.

The board of Ten appointed restructuring expert KordaMentha as administrator of the company two weeks ago.

KordaMentha will now need to work with PPB if the network is to be restructured and recapitalised or sold to a new owner.

Ten had only drawn down it the significantly administration $45.5 million from the $200 million credit facility at the end of its first half — as of February 28 — but it is believed the group was ploughing through an extra $10 million a month when it fell into administration.

The network behind popular shows including Offspring, MasterChef Australia and Family Feud had been seeking a $250 million loan to replace the debt due in December.

Mr Gordon and Mr Packer, through their respective investment vehicles Birketu and Illyria, have been considering a rescue plan for the network.

In April, Ten posted a net loss of $232.2 million for the six months to February, compared with a $13.4 million profit for the same period a year earlier.

Shares in Ten, which is led by chief executive Paul Anderson, were put in a trading halt earlier this month before KordaMentha was called in.