Report: TEN to be put into receivership
Commonwealth Bank is calling in receivers, but administrators confident TEN will survive.
- Published by David Knox
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- Filed under News, Top Stories
The Commonwealth Bank is calling in receivers to Network TEN, according to reports.
The Herald Sun reports insolvency specialist PPB Advisory is expected to act for the Commonwealth Bank.
While the receivership move will not effect TEN’s ability to keep broadcasting in the short term, administrators KordaMentha will now need to work with PPB if the network is to be restructured and recapitalised or sold to a new owner.
At today’s creditors meeting a 14-member committee was appointed to oversee the administration of TEN.
This includes three employees representatives, including journalist Hugh Riminton, plus US network CBS, broadcaster FOX, production houses Endemol Shine and Fremantle Media, the Commonwealth Bank and the investment vehicles of major shareholders Bruce Gordon and Lachlan Murdoch – Birketu, Illyria. Representatives of Consolidated Press Holdings, Cricket Australia, Metroweather, and Starcom Media round out the committee.
Administrators say the network has has enough cash to continue, insisting it is “very very unlikely” that it will go to the wall. Mark Korda said several parties had come forward, including from overseas, expressing interest in exploring the possible refinancing of the network.
The next creditors’ meeting is due to take place on July 19 but Korda Mentha is expected to ask the court for more time to work through the financials.
Source: The Australian, Mumbrella
7 Responses
IMO Network TEN can not survive without a foreign major shareholder that doesnt have inside interests. Bruce Gordon and LM dont count. CBS would make better sense. I hope someone is contacting them and convincing them of buying 57% of TEN similiar to what CANWest once had. Speaking of their is a digital neich media company called Anthem Sports and Entertainment that would be a good fit for TEN, they could definetely change the strategy of TEN from broadcast tv to Online digital streaming, possibly a bit o both. My prediction is that Bruce or LM will buy it privatise it and run it as cheaply as possible. There will be sackings regardless of the result. When News Corp get TEN profit will not matter they have a different aim. But all this is academic anyway.
I think its very suspicious that all the money people are saying TEN is doing great , great ratings , great revenue and great programming.
I feel that its unbelievable that a TV network which has Australia’s richest as major shareholders cant seem to to get a stable share price nor one owner that can afford to make TEN great again.
I have been a shareholder now for around 5 years and its just amazing that TEN is being run into the ground until the value is $0 then it will be sent into receivership and then someone from the wealthy shareholders will by it for virtually nothing.
And what about the people like me 17000 Australians who have put hard earned money into TEN and have now lost everything.
Seriously if people cant see that is is a very suspicious situation and has so much conflict of interest issues.
What I think should happen is that Foxel should by the majority…
Why hasn’t Bruce Gordon made his takeover bid yet? Is he waiting for TEN to get more and more desperate so he can practically steal it?
This so smacks of just a business play to get ch10 at the lowest possible price
I don’t watch much live TV these days, I guess I’m part of the problem, but Ten has almost always been my favourite network. It would be a tragedy if it collapsed.
Interesting to see James Packer tipping his money back into TEN, or as The Age put it:
“Three billionaire shareholders who recently pulled their loan guarantee for the Ten Network, are now likely to provide more funding by the end of this week to keep the struggling network going until it can be recapitalised. As well as assisting with Ten’s immediate funding task, administrator Mark Korda said all three – Lachlan Murdoch, Bruce Gordon and James Packer – are also likely to help with future capital needs.”
Also I get the feeling seeing as Fox Sports produce most of TEN’s sport now, that if Cricket Australia decide to stay with TEN for The Big Bash and Nine do dump the other Cricket if they don’t get the lot as they threatened, TEN and Fox Sports doing a deal to get the lot.
TEN may well come out of this very well yet.
Let’s hope Ten can survive and prosper in the future.