CanWest debt puts pressure on TEN
TEN's parent company is copping it from the global financial crisis. Seriously.
- Published by David Knox
- on
- Filed under News
Channel Nine isn’t the only network with debt woes at the moment. Channel TEN’s parent company, CanWest, warned it might breach some of its debt covenants.
CanWest, which owns 56% of Network TEN, is facing rising pressure to reduce debt and has been hit hard by the global economic crisis.
Yesterday the Canadian company revealed it had lost almost $33 million in the first quarter and would have trouble meeting financial ratios it promised to maintain when it renegotiated $C3.7 billion ($A4.5 billion) in debt in November.
In a recent interview in Australia CEO Leonard Asper said CanWest was under no pressure to sell its stake in TEN and that the company would not be a forced seller.
But analysts said yesterday’s 35 per cent slump in the CanWest share price and a gloomy outlook released by the company could easily result in a change of heart.
Moody’s chief financial officer, John Maguire, said there was “a potential” the bankers could force CanWest to sell its stake in TEN if covenants were breached, as it has pledged the shares as security.
Last month Asper said, “You never say never about any assets but we’re not actively looking to do anything with TEN other than to continue to grow its profits.”
Source: news.com.au, smh.com.au
10 Responses
EJ, that’s actually the old logo…the new one is on the Canwest website.
Yeah I agree with EJ McKenna. The logo is disgusting. The slogan isn’t that original either. Seriously!
… what a crap logo!
It’s carving up the world in angry slices.
Gordon would have to sell WIN Corporation however Rob, considering he already owns a hell of a lot of stations and would own 2 of 3 commercial stations (9 and 10) in Perth and Adelaide.
It’d be a shame if Big Brother CanWest were to pull more funding from Channel 10. In terms of ratings, they’re already close Neighbours with the ABC… (keep ’em coming 😀 )
there goes One HD
Surely News corp would love to own this property…then they can block the 24 hour sports channel so they can keep their Fox Sports pay TV monopoly. I can see it coming…
I would have thought Nine’s private equity backers would be in bigger poo than Canwest but it is the season to bag Ten. The only non govt network to offer more than the status quo in digital and yet still bagged to death (excepting the last minute schedule adjustments they do does irk most).
Maybe Bruce Gordon will buy them if Canwest sell out even though they say that will never be sold in a fire sale
I wouldn’t Rush to put my House on it, Kuttsywood.
Seriously, Ten’s going to end up The Biggest Loser. I Don’t Think They Can Dance their way out of this one, David.