TEN creditors meeting today

There are a range of media articles on the TEN administration today, ahead of creditors gathering today at the Sofitel Hotel in Sydney.

Here’s a snapshot of what they are saying:

According to the Australian Financial Review, ex-ACCC boss Graeme Samuel says Lachlan Murdoch and Bruce Gordon’s move to potentially take control of the network after withdrawing their backing for a new loan to keep the broadcaster afloat is “just clever business.”

“A cynical view may be they have manipulated the process,” he said. “I don’t use that in any pejorative sense. By withdrawing the guarantees and knowing the board has got no choice but to put it in voluntary administration, then saying, ‘Well now here we are, we’re here, we’re now ready to save the company we’ve just put in voluntary administration’, that’s just clever business, providing Parliament-government lets them get away with it.”

But Professor Tim Dwyer of the University of Technology’s department of media and communications tells Fairfax the ACMA should examine whether Murdoch and Gordon exerted control over the Board.

“The situation at Network TEN is one where the Australian Communications and Media Authority should be looking closely at whether or not Mr Gordon and Mr Murdoch are already in breach of the cross media laws,” he said.

Derek Wilding from the Faculty of Law at the University of Technology Sydney, said control arises if a person is able to veto the actions of a Board.

“If media reports are correct, the conduct of some of the guarantors seems to exceed a mere decision not to renew the loan facility,” he said.

Meanwhile, the Australian Shareholders Association which represents 17,000 small shareholders has been denied access to TEN’s creditors meeting today, and will instead receive a personal briefing.

Lachlan Murdoch and Bruce Gordon are not expected to attend.

UPDATED:  The Australian has apologised for it article referring to Chairman David Gordon:

An article in The Australian on Monday (“Ten chairman sold down stake”, page 23) incorrectly stated that Network Ten chairman David Gordon sold 88 per cent of his shareholding in the company before it went into voluntary administration. The Australian acknowledges that Mr Gordon did not sell any shares in the company and in fact his shareholding increased in the period before the company was placed into administration. The reduction in the number of shares held was due to a 10:1 share consolidation applying to all shareholders, which took effect on January 25 last year. The Australian acknowledges that its statement was inaccurate and untrue and apologises to Mr Gordon. The article also stated that Mr Gordon and the Network Ten board failed to conduct scenario modelling on cashflow analysis and were caught unprepared when the three main shareholders decided not to back a financial restructuring of the broadcaster. The Australian also acknowledges that both of these statements were inaccurate and untrue and apologises to Mr Gordon and the board.