HOPE FOR TEN WITH A $30M LIFELINE

TEN Network has been thrown a $30 million lifeline which will keep the broadcaster on the air until the end of August.

The home of The Bachelorette, MasterChef and The Project is set to be either sold or recapitalised by newly appointed receivers and managers PPB Advisory within the next couple of months.

And one media analyst believes Ten could fetch upwards of $58 million, with private equity buyers and billionaires reportedly interested in the asset.

On Friday, Ten’s main lender the Commonwealth Bank appointed Christopher Hill, Phil Carter and David McEvoy of PPB Advisory as receivers and managers to undertake the sale of the embattled broadcaster.

PPB will manage the competitive tender program while voluntary administrators KordaMentha will continue to manage the day-to-day running of Ten.

In a statement lodged with the Australian Securities Exchange yesterday, Ten said PPB had negotiated a $30 million funding package which had the support of billionaire shareholder guarantors Lachlan Murdoch, James Packer and Bruce Gordon.

“This will allow the business to continue to trade as a going concern and enable the receivers and managers to undertake a sale process for, or a recapitalisation of, the business and assets of Ten Network Holdings Limited,” the Ten statement said.

Media analyst Steve Allen from Fusion Strategy said securing the funding deal until August 31 implied that Ten’s management were hoping to have the recapitalisation complete within two months.

“It is implying and it is certainly putting a stake in the ground for those that want to make a bid for Ten to get in there and get cracking,” he said.

“They really have to stay on air; it would be of far lesser value if it was to go to a black screen, even for days. It’s in everyone’s interest to keep this thing ticking.”