Ten Oz calls share trading halt

Ten Oz calls share trading halt

"Ten's board is considering the position of the company in light of the position being taken by Illyria and Birketu and the range of restructuring and refinancing initiatives it has under way", said Ten Network.

The company told the ASX that "Over the weekend, Ten received correspondence from financial advisers to Illyria Pty Limited and Birketu Pty Limited".

The Ten Network has this morning placed its shares in a trading halt after influential shareholders in the embattled broadcaster could not guarantee its financing raising fears it may be forced into voluntary redundancy.

Network Ten's board of directors will use the next two days to decide whether to appoint an administrator to the free-to-air broadcaster or keep pursuing refinancing options to keep the company afloat.

However Ten shares last traded at an all-time closing low of 16 cents, down more than 90 per cent in the past two years, and administration raises the possibility of a new bidder emerging for the company.

Despite the financial troubles, Ten is running a suite of popular shows at the moment and its television revenue increased 2.1 per cent to $341 million in the first half of the current financial year. It is understood that the pair have provided $151 million (A$200 million) of guarantees.

It now needs to secure alternative funding before then, or face administration.

Ten's credit profile is wading into "stress territory", and it will struggle to get a traditional lender to come to its rescue, according to Raymond Lee, a Sydney-based money manager at Kapstream Capital. Other directors include Debbie Goodin, former trade minister Andrew Robb (who represents Gina Rinehart's 8.2 per cent), Andrew Lancaster, chief executive of Win Corporation and representative for Mr Gordon's 15 per cent, and Foxtel chief executive Peter Tonagh.

Ten's guarantors: Lachlan Murdoch, Bruce Gordon and James Packer.

"The board should not rush prematurely into administration", Ms Fox said.

If Ten were to enter receivership, it would allow the network to dispose of these output deals and could pave the way for its guarantors to launch takeover bids if media reforms are passed that relax ownership laws. Mr Murdoch is hamstrung because his role as co-chairman of publisher News Corp and ownership of Nova radio stations would tip him over the two-out-of-three rule.

"Whilst this is an unsettling time for us all, we must assume that our operations continue as usual", he wrote.

The appointment of administrators could give the broadcaster a chance to get itself out of onerous contracts with U.S. networks CBS and 20th Century Fox.

Related Articles

  • Days Gone E3 Gameplay Preview

    It focuses more on the open world aspect of the game rather than the zombie horde combat that we saw a year ago . This time around, the new Days Gone gameplay trailer focuses on the game's more stealthy aspects.
    Iran says Saudi supports militants on its turf after attacks

    Iran says Saudi supports militants on its turf after attacks

    The IS-affiliated attackers shot people and blew bombs on the premises of the Parliament and Ayatollah Khomeini's mausoleum. United States is a "terrorist country" so no chance of normalising ties, Supreme Leader Ayatollah Ali Khamenei says.
    Oberlin council pledges to adhere to Paris accord standards

    Oberlin council pledges to adhere to Paris accord standards

    During Obama's presidency, the United States was one of the 195 countries around the world to sign up to the 2015 agreement. Cambodia, a member of the UN Framework Convention on Climate Change since 1995, endorsed the Paris deal.
  • Bangladesh and N. Zealand hopes on the line

    Virat Kohli urged India to produce a repeat of their Pakistan demolition when they face Sri Lanka in Group B today. But fast bowler Mark Wood took the key wicket of New Zealand captain Kane Williamson (87) in the 31st over.
    Court Uses Trump's Twitter Against Him to Strike Down Travel Ban

    Court Uses Trump's Twitter Against Him to Strike Down Travel Ban

    He continued a series of attacks against judges who have ruled against him, tweeting that "courts are slow and political! ". The second order also imposed a 90 day ban on travel from Iran, Syria, Sudan, Libya, Somalia, and Yemen.
    I Am Confident 2017 Budget Will Deliver Positive Economic Growth - Osinbajo

    I Am Confident 2017 Budget Will Deliver Positive Economic Growth - Osinbajo

    He commended the leaders of the National Assembly for their statesmanship and patriotism in resolving the issues around the 2017 budget.
  • Two Australians killed in London terror attack

    Fears were growing last night that a missing Frenchman may have been struck by the attackers' van and thrown into the Thames. As he was working on the busy Saturday night, one of the attackers ran into the restaurant and stabbed him in the neck.
    Embattled May unveils Britain's new cabinet

    Embattled May unveils Britain's new cabinet

    Michael Gove is "entirely unfit" to carry out his new brief as Environment Secretary, the leader of the Green Party has said. Boris Johnson stays on as foreign minister, alongside fellow eurosceptic David Davis as Brexit minister.

    The Xbox One X will be great ... next year

    Microsoft is also shipping the Xbox One X with an Ultra HD Blu-ray drive for 4K movies and entertainment, and 1TB of storage. I'm not going to bag on Microsoft for pricing the Xbox One X at $500; it's a genuinely good price for what you're getting.
  • Max Verstappen:

    Max Verstappen: "P5 was the best we could aim for"

    Asked if he felt Verstappen had been over-optimistic, Vettel replied: " I haven't seen from his point of view, but obviously I wasn't expecting it ".

    Tom Cruise's 'Mummy' Reboot Debuted to $142-M Internationally

    Rounding out the top five was " Guardians of the Galaxy Vol. 2 ", which nabbed an estimated $6.2 million domestically. It Comes at Night , despite a D CinemaScore came in # 6. " Baywatch ", $4.6 million ($10.7 million international).

    Friend says Trump weighs firing special counsel Mueller

    Mueller was appointed last month to look into allegations of coordination between the Trump campaign and Russian Federation . Spicer's statement said the president had not spoken to Ruddy on the matter, though Ruddy never had made such a claim.