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Ten pays out creditors using CBS funds

Network Ten has paid out creditors who were left out of pocket when the company went into administration in June last year, KordaMentha Restructuring has announced.

The majority of creditors have received payments of 100 cents in the dollar, with some creditors receiving higher payments than originally expected.

According to a release from KordaMentha, CBS provided $40.58m to fund a divided to creditors following the acquisition, which was finalised in November.

As a result, key content providers who remain with Ten and ongoing trade creditors will receive 100 cents in the dollar. Meanwhile financial, statutory and other creditors will receive 45c in the dollar, with a final dividend of 21 cents to be paid before June 2018.

Terminated contracts – which excludes Fox – will receive 100 cents in the dollar.

21st Century Fox’s contractual agreement with Ten was terminated in October last year. Fox has received a final fix payment of $12m. Two months ago, Fox was acquired by Disney.

Mark Korda said the outcome was outstanding under the circumstances.

“The network has a strong and stable new owner, a talented leadership team and a loyal, creative staff whose support was critical to the successful restructure. The viewers, advertisers, content partners and suppliers also helped the network get through a challenging period,” Korda said.

“And most of the creditors are now getting all their money back”.

Channel Ten went into administration in June last year, following the withdrawal of financial support by interests controlled by WIN owner Bruce Gordon, Lachlan Murdoch and James Packer. Mark Korda, Jenny Nettleton and Jarrod Villani of KordaMentha were then appointed as administrators.

In September, US media giant CBS announced it would buy Network Ten – an acquisition which includes Ten, One, digital platform TenPlay and the Eleven.

The acquisition was finalised in November.

 

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