“Unsettling for all of us”: TEN in trading halt
CEO advises staff "We must assume that our operations continue as usual" as TEN Board suspends trading.
- Published by David Knox
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- Filed under News
TEN Network Holdings has suspended trading on the Australian Stock Exchange, following news that billionaire shareholders will not back a new loan for the ailing network.
It is understood Lachlan Murdoch and Bruce Gordon will not extend their loans beyond December whilst James Packer is looking to sell his shares.
CEO Paul Anderson today advised staff, “As you may be aware the Board has this morning placed TEN shares in a trading halt.
“This trading halt follows from a letter received from two of TEN’s shareholder guarantors advising that they would not extend their guarantees beyond the expiry of TEN’s debt facility in December this year.
“The Board are currently considering their options and will advise as soon as there is any further update.
“I will keep you all updated with any further information, and whilst this is unsettling for all of us, we must assume that our operations continue as usual.”
Without a new $250m loan facility TEN could be facing receivership.
16 Responses
I noticed that share price on 10 is $0.16. This week I looked on my iPhone & noticed that there’s no activity from yesterday. How could this happen?
Same way as last time, and the time before that. Costs exceed income.
It says in the title: TEN trading halt.
What does “receivership” mean?
A receiver is appointed by bankruptcy courts or creditors to run the company.
To quote Dr. Google “In law, receivership is a situation in which an institution or enterprise is held by a receiver—a person “placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights”—especially in cases where a company cannot meet financial obligations or enters bankruptcy.”
It will be the biggest story in business for the year, me thinks, if it goes under. I mean a major network ending would be a historic moment, to say the least. And a real sign of the fast changing times. Not to mention the huge dent it will create in the TV industry. The knock on effect would be massive.
We need to be clearer about the differences between ending and receivership.
So it goes into receiveship or “administration ” as some newspaers are saying. Then someone is appointed to get the financial affairs in order until a buyer comes along right to continue to finance the network. Is that right. What happens if no one wants to finance/ buy it /run it.?
It’s not really my area of specialty, but they will need to strip down costs to make it viable, which could involve sackings. A lot is also riding on the media reforms.
When the administrators come in, they take over to try and save the company. When the receivers come in it’s game over.
The Ten Network has been in receivership before. So has Seven. It is not necessarily the end of the world for them but there will be a lot of pain if it happens. Remembering back to 1990 when Ten sacked 300 staff in one day.
Because they are in a trading halt,on open the bottom will fall out,even if they have good news its all for the front door!
I suspect this is likely to be “Story of the Year” in annual poll.
But what does that mean for their programing?
See above from CEO.