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TEN rescue? Lachlan Murdoch, Bruce Gordon merge shares.

Two of TEN's shareholders make a move in what appears to be part of a rescue package to restructure network.

Just hours after the board declared voluntary administration, two of TEN’s shareholders, Lachlan Murdoch & Bruce Gordon, have merged shares.

ABC is reporting it is a play that could ultimately see the pair take the business out of administration and into private hands.

In a change of substantial holding notice to the ASX, Gordon’s investment vehicle Birketu, which holds 15% of TEN stock, announced a tie up with Murdoch’s 7.5% stake held in his Illyria company.

“In the event of a default by TEN of its obligations under the existing facility, there is a risk of Birketu and Ilyria each being exposed to significant liability under their respective guarantees together with a complete loss of their respective investments in TEN’s equity,”  a letter to the ASX reads, republished in The Australian.

“In such circumstances, given the commonality of the parties’ interests in TEN as shareholder guarantors of TEN’s debt, it may be in the parties respective commercial interest to consider whether a proposal could be formulated and agreed between Birketu and Ilyria under which TEN’s existing secured debt would be repaid and any guarantee support would be removed over an appropriate period.”

The combined 22.5% stake is above the 19.9% threshold where a takeover bid must be launched.

However, at this stage there has been no word of a bid being made.

2 Responses

  1. One can’t help think a conspiracy is in play here. The day before media reform is debated in parliament 10 goes in adminstration then the speculation Bruce Gordon may come to the rescue. Mmmmm one wonders……..

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