Nine headed for demise without US rescue

Nine was headed for “certain demise” if US hedge funds had not stepped in to rescue it, according to Leon Black, chairman of Apollo Global Management.

Black has written to The Australian, responding to claims by Seven Chairman Kerry Stokes to the joint senate hearings that Nine’s two US owners cared more about profits and potential mergers.

“Channel Nine is owned by two American hedge funds. It’s a little bit different, it’s not an Australian company, it’s not governed on the stock exchange if it’s traded,” Stokes said last month.

“Two American hedge funds own Nine and I can promise from experience of dealing with them they don’t have much interest in Australia other than making a profit.”

But Leon Black tells The Australian, “Had not the investors Apollo and Oaktree . . . agreed to subsume their holdings of Nine Entertainment Co’s towering debt for equity, the company was headed for certain demise.

“Instead, Nine is today a vibrant, strong and healthy company close to debt-free. Our ownership has given the company a new lease on life to achieve its goals and grow, and for which we, like all other shareholders, will be rewarded only if Nine succeeds as a business.”

Since the network was rescued, Nine has embarked on a series of voluntary redundancies as part of a cost-cutting move.