Ten Network status report delayed
AN EAGERLY awaited report detailing the state of Ten Network has been delayed as US media titan CBS Corporation waits to finalise its buyout of the broadcaster.
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AN EAGERLY awaited report detailing the state of Ten Network has been delayed as US media titan CBS Corporation waits to finalise its buyout of the broadcaster.
US BROADCASTER CBS WILL STRENGTHEN COMPETITION WITH NETWORK TEN TAKEOVER
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Administrator Korda-Mentha was preparing to release a report on Thursday, Business Daily believes, but has deferred the move.
Once the report is out, KordaMentha can set a date for the meeting of creditors.
The report could be released on Friday or its release may slip into next week.
Administrators are targeting September 12 to hold the meeting of creditors. They are required by law to give creditors five clear business days to analyse the report.
The creditors’ meeting would then be followed by a Supreme Court ruling to ratify the transfer of shares from existing investors to CBS. At this point, any challenge is most likely because CBS, as the biggest creditor to Ten, would win the vote.
CBS aims to hold 100 per cent of Ten by settling the broadcaster’s debts, including $98 million owed to the Commonwealth Bank and $33 million to key investors James Packer, Lachlan Murdoch and Bruce Gordon.
But shareholders will get nothing for their stock. Both Mr Murdoch, who is also co-chairman News Corp, and Mr Gordon have pointed out that the deal to sell Ten to CBS is a bad outcome for shareholders.
Under their competing bid, shareholders would have kept a quarter of their equity, with Ten relisted.
News of the delay to the release of the report comes after it emerged that Ten shareholders were considering a class action against the broadcaster amid frustration that they would receive no compensation for their stock.
Preliminary talks between law firms and the Australian Shareholders’ Association about a class action have taken place after some Ten shareholders contacted the group and expressed their concerns.
“Class actions are very difficult and whether that is a possibility or if it’s not, it’s really too early to say,” ASA director Allan Goldin said.
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