Ten goes into ASX trading halt as financial woes grow

Financially troubled TV broadcaster Ten Network has this morning gone into a trading halt on the ASX.

The move came after it was reported over the weekend that the three backers of Ten’s expiring $200m loan facility had declined to extend their backing beyond the end of the year.

Ten: planning dramatic cost cuts

Shareholders James Packer, Lachlan Murdoch and Bruce Gordon have been guaranteeing the CommBank loan. But in April, they signalled that they might not get behind the loss-making network’s new call for a bigger $250m loan

The network is set to announce a major cost-cutting program while it also attempts to renegotiate its expensive US studio output deals. However, in April it warned the market there was “material uncertainty” about the company’s future.

Ten’s share price had declined to just 16c by the end of last week | Source: Google Finance

Before today’s trading halt, Ten’s shares were trading at just 16c, valuing the entire business at less than $60m.

According to the ASX statement, Ten’s shares could be suspended until Thursday, “pending the release of an announcement”.

Negative investor sentiment about the television sector has also hit other stocks in the last few days.

Last week saw the share price of Seven West Media decline to 64c, taking the market capitalisation of SWM below $1bn for the first time.


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