Mediaworks to repay $30m debt

MEDIAWORKS will pay back its $30 million debt to the Government and reduce its overall debt levels as part of a “joint restructure” proposed by owner Ironbridge and its private equity rival TPG Capital.

Ironbridge, which bought Mediaworks for about $740m in 2007, announced yesterday that senior lenders had been handed the proposal by itself and TPG, who were now “working together”.

Ironbridge has been trying to satisfy the bankers with capital injections into the television and radio business.

However, low advertising revenues in recent years and the weight of debt owed has made the recovery a slow process.

Mediaworks is believed to owe about $388m to senior lenders, although the company has not filed accounts with the Companies Office since March 2011.

TPG happens to be one of those senior lenders, having bought out $70m worth of debt owed to the Commonwealth Bank of Australia late last year.

TPG had moved in for a “back-door” takeover; attempting to buy more lenders’ debt and gain control of the company, but has now opted to put its lot in with Ironbridge.

Meanwhile, Mediaworks’ television operation, including TV3 and Four, has a new chief executive, Paul Maher.

Maher is the second convert from Television New Zealand to take Mediaworks’ top job following Jason Paris’ brief stint last year.