Ten administrators approve CBS sale

US media giant CBS Corporation is one step closer to a deal to purchase Network Ten, as administrators Mark Korda, Jennifer Nettleson, and Jarrod Villani of Korda Mentha confirmed the sale and recapitalisation transaction today.

In a release on the Australian Securities Exchange (ASX), Ten confirmed the refinance part of the transaction had been completed.

CBS has provided a loan of approximately $142.7m to refinance the secured debt of the company, including shareholder guarantor fees for Lachlan Murdoch, Bruce Gordon, and James Packer.

The fees paid to the trio were in exchange for guaranteeing the $200m loan from Commonwealth Bank.

As part of the refinance transaction, the company has also made a $30m working capital facility.

The announcement comes a week after CBS announced it would buy Network Ten – an acquisition which includes Ten, digital channel Eleven, One, and digital platform, TenPlay.

Ten went into administration in June this year, after correspondence from Illyria and Birketu (Murdoch and Gordon’s respective investment vehicles) forced the network’s hand following a $232.2m loss reported in its half-year results in April.

At the time, CBS was among Ten’s largest creditors, putting in a debt claim for more than $800m, according to The Sydney Morning Herald.

When CBS announced it would buy Network Ten, Villanni said CBS would provide “immediate financial support” to ensure continuity of operations.

“The receivers and administrators will work closely together to ensure that operations continue uninterrupted while the transaction is finalised,” he said.


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