Bruce Gordon has lost his court case against administrators KordaMentha and CBS, which aimed to challenge the takeover of Channel Ten by the American behemoth.
Lachlan Murdoch and Bruce Gordon took court action against KordaMentha, stating that CBS’ bid for the embattled network was treated more favourably, and their original bid was not adequately presented to creditors.
Today’s news comes after a NSW Supreme Court threw out Gordon’s court case against KordaMentha.
Supreme Court Justice Ashley Black has ruled that the second creditors meeting will proceed tomorrow as planned.
On September 6th, Mr Gordon (via his companies WIN Corp and Birketu) took swift legal action to stop administrators, KordaMentha, from holding a second creditors meeting, scheduled for last week. The meeting was delayed until Tuesday 19th September.
Mr Gordan also requested that the court mandated KordaMentha to make several legal declarations, inclusive of stating that the second report to creditors did not provide adequate information about Mr Gordon and Lachlan Murdoch’s first bid for Channel Ten through companies Birketu and Illyria Nominees.
Supreme Court Justice, Ashley Black, states he was “not satisfied” that Mr Gordon’s lawyers had established any deficiencies in KordaMentha’s creditors’ reports, requiring orders to be made.
Mr Black was also not convinced that CBS should have voting rights reduced or eradicated at tomorrow’s creditors’ meeting.
As part of the recent ruling, Mr Gordon was ordered to pay the other parties’ legal costs.
Murdoch and Gordon made a second revised bid for Channel Ten last week.
To this, Supreme Court Justice, Ashley Black, states he had “not had regard to commercial developments which may have occurred after the hearing was completed and judgment reserved” as the parties did not endeavor to pursue a further hearing.
He states, “While that approach may seem artificial, it reflects the fundamental proposition that a court must reach its decision on the evidence led by the parties at the hearing before it”.
He affirmed that the question for the court was “not, and should not be, which of any competing commercial proposals put by interested parties would be most advantageous to the creditors of the Ten Group companies” – including shareholders and employees.
“That is a matter properly left for their decision”.
Following today’s news, Channel Ten creditors are given the choice to adjourn the scheduled creditors meeting for tomorrow, in light of the revised bid made by Gordon and Murdoch’s companies Birketu and Illyria, or to simply vote on the resolution for American giant CBS to acquire the company.
