Ten gets $ 30m life­line as in­ter­est grows in net­work

Townsville Bulletin - - NEWS - ED­WARD BOYD

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

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

One me­dia an­a­lyst be­lieves Ten could at­tract 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 to un­der­take the sale of the broad­caster.

PPB will man­age the com­pet­i­tive ten­der pro­gram while vol­un­tary ad­min­is­tra­tors Kor- daMen­tha 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.

Ten shares last traded for 16c on June 14, valu­ing the com­pany at about $ 58 mil­lion.

The $ 30 mil­lion loan to Ten comes just days af­ter the Fed­eral Gov­ern­ment abol­ished TV li­cence fees for the 2016- 17 fi­nan­cial year.

Ten ex­pects the re­duc­tion in fees will save the broad­caster $ 22 mil­lion.

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