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TEN administrators granted 120 day extension

Creditors get more time on TEN's future, but corporate regulator raises concerns of a perception of conflict of interest.

TEN administrators KordaMentha have been granted a 120-day extension meaning creditors now have until November 20 to hold their second meeting and decide how to possibly recapitalise the business.

It comes at a time when corporate regulator Australian Securities and Investments Commission argued in the Federal Court that almost $1m of work done by the firm before they were appointed administrators raises concerns of a perception of conflict of interest.

KordaMentha was paid almost $1 million for work for TEN lawyers, Gilbert and Tobin, before being appointed as administrator, but Leon Zwier argued the administrators were “highly supervised” and did not have a pre-existing relationship with board members.

He also argued it was “global best practice” for a major corporation to plan ahead in order to maximise the chances of recovery.

TEN went into voluntary administration on June 14 when it became clear billionaire shareholders Lachlan Murdoch and Bruce Gordon would not stretch their guarantee on the network’s $200m debt facility to a new $250m limit by December.

Bruce Gordon, Lachlan Murdoch & James Packer recently backed a $30m operations plan available until August 31.

The hearing is due to continue on Tuesday.

Source: Nine, The Australian

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