Holding play by big three

THE battle for the Ten Network has taken another twist, with a key creditors meeting now postponed until the week after next.

A second creditors meeting had been due to take place next Tuesday but will now be held the following week.

The delay, ordered by the NSW Supreme Court yesterday, followed a successful application by lawyers representing Ten bidders Lachlan Murdoch, Bruce Gordon and Twentieth Century Fox.

They are challenging an attempt by US media titan and bidding rival CBS to take control of Ten.

That matter will return to court for a separate two-day hearing next Tuesday, when a judge will examine claims of deficiencies in the administrators’ report to creditors.

It is understood lawyers for Mr Murdoch, Mr Gordon and Fox will argue the administrators’ report was deficient in several respects.

That includes a failure to present alternatives to the CBS bid, liquidation or the resignation of the administrator.

A delayed report by administrator KordaMentha detailing the state of Ten also failed to summarise in any meaningful way the competing bids.

Under the CBS bid, shareholders will get nothing for their stock.

The proposal by Mr Murdoch and Mr Gordon would have seen shareholders keep 25 per cent of their equity, with Ten relisted.

Among other concerns is the absence of a detailed summary of the transaction deed and refinancing from CBS.

Lawyers argued the timing of the second meeting of creditors originally planned for September 12 was inadequate given the size and complexity of the proposed transactions and Ten’s receivership status.

The document gave no information on how CBS would handle its programming supply contract with Ten, apart from not including its debt on the contract.

The report also did not release the independent expert’s report by KPMG detailing the value of equity in the company.

Secured creditors and employees will be paid out in full under a plan by KordaMentha to sell the broadcaster to CBS, but TV production houses will only be paid out if they commit to staying with the network.