CBS Loan Channel Ten $143m To Pay Debts, Sale Not Yet Approved
US broadcasting behemoth, CBS, has repaid $142.7 million of Channel Ten’s debts, 24 hours past the deadline of August 31st.
The debt includes bank fees and loans made to shareholder guarantors Lachlan Murdoch, James Packer and Bruce Gordon.
The funds were reportedly held in a trust account, while the exact figures were finalised.
CBS still requires the approval of creditors and the Foreign Investment Review Board to acquire Channel Ten and approve the transfer of all shares to CBS.
Administrator KordaMentha and receiver PPB Advisory state CBS has provided Channel Ten an extra $30 million as “working capital”.
Leading up to its voluntary administration, various Channel Ten shareholder guarantors agreed to let the broadcaster access a further $30 million of its Commonwealth Bank facility, however, only until August 31st. On the 28th, KordaMentha stated it reached a deal with CBS, who is Channel Ten’s biggest creditor.
Sources state on Monday creditors will receive a detailed report and deed of company arrangement. A meeting regarding this is said to be held either this week or next.
The news of refinancing was delivered Monday morning to Ten shareholders – despite the fact they will receive no compensation from the CBS deal, nor a say in the matter.
Treasurer Scott Morrison is currently being lobbied to implore CBS to compensate Ten shareholders in order to receive the necessary approvals to go forth with the sale.