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$30m funding package to keep Australia’s Network Ten going

TimeOdd Stories - Channel Ten

Australia’s Network Ten has secured its immediate future after key shareholders agreed to fund an A$30 million (€20 million) loan.

The funding package is available until August 31 and comes ahead of either a company sale or a recapitalisation process.

Lachlan Murdoch, Bruce Gordon and James Packer agreed to support the package, which buys Ten some time and keeps the network on air.

Commercial channel Ten went into administration last month after two Murdoch and Gordon pulled their financial support by refusing to support terms of a new long-term loan. Packer had already removed himself from proceedings.

Troubled broadcaster Ten Network has secured a $30 million funding package so that it can keep operating while receivers and managers look to sell or recapitalise the business.

The Ten Network’s main lender, the Commonwealth Bank, appointed PPB Advisory as receivers and managers of Ten at the weekend.

In a statement lodged with the ASX, Ten on Monday said the $30 million package, which has continuing support its major shareholder guarantors, is available until August 31.

Following a first meeting of creditors of Ten in late June, the broadcaster’s billionaire backers Bruce Gordon, Lachlan Murdoch and James Packer signalled they would support a new financial facility to keep the network on air.

“This will allow the business to continue to trade as a going concern and enable the receivers and managers to undertake a sale process for, or a recapitalisation of, the business and assets of Ten Network Holdings Limited,” the Ten statement said.

Administrators KordaMentha at the time said that once the Commonwealth Bank had appointed a receiver for Ten, a new financial facility would be put in place to keep it broadcasting.

PPB Advisory said it would sell Ten as a going concern or recapitalise it through a competitive tender.

It said the funding would allow operations to continue while it sought a suitable party to buy or recapitalise Ten.

Meanwhile, the administrators will continue to run Ten.

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Written by TimeOdd

TimeOdd is a leading technology media property, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking tech news.

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