REALITY IS TEN’S NOT TOAST YET AS LIFELINE EMERGES
TWO of Ten Network’s billionaire shareholders appear poised to throw it a lifeline after the broadcaster tumbled into administration.
Lachlan Murdoch and WIN Corporation owner Bruce Gordon, who control a combined 22 per cent of Ten, have teamed up to look at a restructure.
Papers lodged with the Australian Securities Exchange reveal their respective investment companies have agreed to “work together exclusively” on a restructure proposal.
Mr Murdoch holds a 7.7 per cent stake in Ten through his investment vehicle Illyria and Mr Gordon’s 15 per cent is held through his equivalent investment firm Birketu.
The documents acknowledge the potential for deep losses if Ten were to collapse.
James Packer, Mr Gordon and Mr Murdoch, the cochairman of Gold Coast Bulletin publisher News Corp, guarantee a $200 million debt facility Ten has with the Commonwealth Bank that is due to expire in December.
“In the event of a default by Ten ... there is a risk of Birketu and Ilyria each being exposed to significant liability under their respective guarantees together with a complete loss of their respective investments in Ten’s equity,” the papers say.
They say it “may be in the parties’ respective commercial interest” to consider a restructure where Ten’s secured debt was repaid and any loan guarantee was gradually wound back, then removed.
Ten fell into administration yesterday only days after the trio of key backers elected not to guarantee a new $250 million loan.
Korda Mentha has been appointed administrator and has said it would work closely with management, employees, suppliers and content partners while it assesses the state of the broadcaster.
“During this period, the administrators intend to continue operations as much as possible on a business as usual basis,” Ten said in a statement.
A meeting of creditors will be held late next week.