Network Ten’s future in doubt as billionaire backers Murdoch and Gordon pull their support
THE future of the Ten Network is in doubt after two billionaire shareholders pulled out of supporting a new funding deal for the loss-making broadcaster.
Business
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THE immediate future of the Ten Network is in doubt after its billionaire shareholders decided not to support a new funding deal for the loss-making commercial free-to-air broadcaster.
Shares in Ten have been placed in a trading halt after Lachlan Murdoch and Bruce Gordon — who own stakes through their Illyria and Birketu private investment vehicles — said they will no longer guarantee its debt when its present $200 million debt facility through the Commonwealth Bank expires on December 23.
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It means the broadcaster could be unable to continue as a going concern beyond that date, putting the future of its broadcasting licence and stable of programs under a dark cloud.
Ten said on Tuesday it was told of the billionaires’ changed intentions through correspondence at the weekend.
“Ten’s board is considering the position of the company in light of the position being taken by Illyria and Birketu and the range of restructuring and refinancing initiatives it has underway,” Ten said in a statement to the Australian share market operator.
“Pending these determinations over the coming days, Ten considers that its shares will not be able to trade on an informed basis and, accordingly, requests the trading halt.”
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Until the weekend, Murdoch, Gordon and Crown Resorts majority owner James Packer had gone guarantors for a $200 million line of credit for the broadcaster, which is looking to secure agreement for a new $250 million loan to keep it afloat.
Shares in the broadcaster behind MasterChef Australia, The Project and Survivor Australia last traded at 16c, giving the group a market capitalisation of just $59 million.
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