The three billionaire shareholders who sparked Ten’s voluntary administration will step in to prop up the network’s cash flow until it finds a new owner, administrators KordaMenthe have revealed.
Ten was forced into a trading halt and then voluntary administration last month when financial backers Lachlan Murdoch and Bruce Gordon failed to guarantee a new $250m loan.
On Monday, after the first creditors’ meeting was held in Sydney, Ten’s administrators said leading shareholders Gordon and Murdoch, who now jointly own 22.5% of Ten, and James Packer, have agreed to provide the funds needed to keep the network on air.
“We have adequate cash resources at the present time but, by the end of this week, the shareholder guarantors will put a financing facility in place to ensure Ten has sufficient cash to continue to operate,” partner Mark Korda said.
Ten posted a disastrous half-year loss of $232m and warned in April that its future as a “going concern” was in doubt if it could not secure another loan.
Monday’s meeting was the first for creditors since the MasterChef and Bachelor broadcaster went into voluntary administration on 13 June.
A 14-member creditors’ committee was appointed to oversee the administration of Ten. Members include senior Ten journalist Hugh Riminton, representing the employees, and representatives from Cricket Australia, the US network CBS, broadcaster Fox, production houses Endemol Shine and Fremantle Media, the Commonwealth Bank and the investment vehicles of Gordon and Murdoch, Birketu and Illyria.
The Australian Shareholders’ Association’s chief executive, Judith Fox, who was excluded from the meeting, said she would prefer to see the network re-listed, the business salvaged and shareholders’ stake in the business continue.
The Australian Financial Review has reported that one major creditor, the Commonwealth Bank, may appoint a receiver as soon as this week.
However, Korda played down that threat and said a receivership would not impact the long-term viability of Ten.
Ten’s chairman, David Gordon, has received an apology from the Australian for an erroneous report in Monday’s paper that claimed he sold most of his shares before the company went into voluntary administration.
The report was removed from the website on Monday morning.
