Ten Network falls into administration, appoints Korda Mentha

TEN Network has collapsed into administration days after its major financial backers pulled the plug. The network says it will try to maintain “business as usual”.

The Ten Network has gone into voluntary administration. Picture: AFP

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TEN Network has fallen into administration days after its major financial backers pulled the plug.

Korda Mentha has been appointed voluntary administrator.

Ten today said the administrator had advised it would work closely with management, employees, suppliers and content partners while it carried out a financial and operational assessment of the business.

“During this period, the administrators intend to continue operations as much as possible on a business as usual basis,” Ten said in a statement to the stock exchange.

Ten Network talent Waleed Aly, Carrie Bickmore and Peter Helliar from The Project. Picture: Richard Dobson

The network originally gave itself until tomorrow morning to find new financiers but those attempts have failed.

“The directors of Ten regret very much that these circumstances have come to pass,” the statement said.

“They wish to take this opportunity to thank all Ten employees and contractors for their commitment and enthusiasm for Ten’s programs and business.”

Expensive programming such as MasterChef Australia could be in jeopardy.

The broadcaster behind programs such as MasterChef Australia, The Bachelor and The Project yesterday asked for a halt to trading in its shares as it revealed two key backers had decided against keeping it afloat beyond December.

Company secretary Stuart Thomas told shareholders that investment companies Illyria and Birketu did not plan to ­extend their guarantee for lending to the broadcaster.

Ten has a $200 million debt facility from the Commonwealth Bank that is backed by its key shareholders and due to expire on December 23.

The network had been seeking a $250 million loan to replace that facility but Illyria and Birketu, the respective investment vehicles of Lachlan Murdoch and Bruce Gordon, have declined to renew their guarantees.

Ten Network board member Andrew Robb, with chief executive Paul Anderson.

The network was hoping for the support of its trio of key backers, Mr Murdoch, Mr Gordon and James Packer.

While the statement yesterday made no mention of Mr Packer, he was already believed to have decided against backing a new loan.

A year ago, Ten had ­a market capitalisation of $387 million, but that figure had been cut to $59 million by the close of trade last week.

Mr Gordon owns regional television heavyweight Win and is the biggest shareholder in Ten with a 15 per cent stake.

Mr Murdoch, co-chairman of Herald Sun publisher NewsCorp, owns 7.7 per cent of the broadcaster.

Macca’s take.

Ten chairman David Gordon ­oversees a board that ­also includes Foxtel chief Peter ­Tonagh, ­former federal Liberal MP ­Andrew Robb and Win chief Andrew Lancaster.

The group says it needs the new finance to meet its obligations under the existing debt facility, including interest payments and shareholder guarantor fees.

In April, Ten posted a net loss of $232.2 million for the six months to February, compared with a $13.4 million profit for the same period a year earlier.

The broadcaster has previously said it was in talks with programming providers about reducing costs — a move that may have an impact on its news services.

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