CBA may push for TV network’s sale

TEN Network’s main lender, the Commonwealth Bank, is set to appoint a receiver who could look at sale options for the broadcaster, while administrators of the troubled TV network say it will have cash to continue operating.

Following a first meeting of creditors of Ten, it is understood the group’s billionaire backers Bruce Gordon, Lachlan Murdoch and James Packer have signalled they will support a new financial facility to keep the network on air.

Administrators KordaMentha said when secured creditor the Commonwealth Bank appoints a receiver in coming weeks, a new financial facility will be put in place to keep Ten broadcasting.

KordaMentha senior partner Mark Korda said Mr Gordon, Mr Murdoch and Mr Packer, through their respective investment vehicles, would provide support for the facility, although the final figures were yet to be confirmed.

“My understanding is it’s all three at the present time,” Mr Korda said after the meeting in Sydney yesterday. Of the original $ 200 million facility at the heart of Ten’s woes, Mr Korda said it had been drawn down to $ 97 million at the date of his appointment on Tuesday last week.

“We have adequate cash resources at this time, but by the end of this week the shareholder guarantors will put a financing facility in place to ensure that Ten has sufficient cash to continue to operate,” Mr Korda said.

KordaMentha will seek a court extension to delay the next meeting, due to be held on July 19, in an effort to push back the time frame to recapi- talise the business, possibly until Federal Parliament next sits in August.

Mr Korda confirmed he had received preliminary interest in Ten, but said the plan to save the network was not reliant on any parliamentary changes to media law that might allow for restructured ownership.

“Obviously the industry needs the media laws to change and Channel Ten is a player in that industry. But we believe the company can be recapitalised, irrespective of any change to the media laws,” Mr Korda said.

A 14- member creditors committee was appointed yesterday to oversee the administration of Ten, including journalist Hugh Riminton, who said there was “reasonable confidence a buyer will come along”.

The Australian Shareholders’ Association was excluded from the creditors’ meeting and said shareholders were “not being dealt a hand” in the company’s future.

Chief executive Judith Fox said the ASA would like to see the network relisted and the business salvaged.