CBS pays off CBA, Murdoch, Gordon & Packer

CBS has now paid off TEN debts owed to the Commonwealth Bank of Australia, Lachlan Murdoch, Bruce Gordon and James Packer.

The biggest creditors were paid a combined $140 million on Friday by CBS. All four are no longer creditors of TEN and are understood to have been stripped of committee and voting privileges.

However 21st Century FOX has an unsecured debt, while WIN Corporation is also an unsecured creditor as TEN’s regional affiliate.

The move gives CBS even more voting power at the creditors meeting due on Tuesday, 12 September.

But there is still the possibility of legal action by smaller shareholders.

A creditors report compiled by administrator KordaMentha is due out on Monday and will include details of TEN’s finances as well as the sale process.

Source: Australian Financial Review

8 Comments:

  1. Since CBS haven’t paid 21C Fox and Fox shows have disappeared from Network Ten, it would appear they haven’t sorted out a deal. CBS probably don’t want to pay a lot of money to US rival for new Fox shows that are unlikely to rate well in Australia.

    • In which case CBS own $140m of secured debt and the associated votes. CBS’s offer was $123m to all creditors and they’ve now paid out more for just secured credit. WIN shows Ten shows (Nine in the West) and pays Ten a percentage of the ad revenue. Not sure exactly what Ten owes them, make ups for poorly performing shows? or some contra for promotion? Anyway it’s less than flows the other way.

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