The Ten network is in administration

The Ten network is in administration

KordaMentha, which was appointed as voluntary administrators, said it would work with management and content partners while undertaking a financial and operational assessment, with a view to either recapitalise or sell the business.

The Australian Financial Review, citing sources, said Ten management believed they had a plan to keep the broadcaster public and viable, but needed to renegotiate content deals with U.S. studios 21st Century Fox and CBS.

The administrators intend to continue operating the broadcaster "on a business as usual basis" as much as possible while conducting the review, Network Ten said.

The agreement would mean Murdoch and Gordon could eventually launch a bid to increase their shareholding or buy Ten as part of a restructure plan if media ownership laws are relaxed.

Ten Network has entered voluntary administration after failing to secure a guarantee for a new $250 million loan it sought to continue its operations beyond Christmas.

In a statement the directors said they "regret very much that these circumstances have come to pass" and they thanked the leadership team which had achieved everything the board asked them to do over the past few years in very challenging circumstances.

The parent company of Australia's Ten Network today called in voluntary administrators to examine the potential sale or recapitalisation of the business.

Together with other cost savings and the $A22m reduction of license fees paid to the federal government the company expects a A$50m improvement in earnings in fiscal 2018 and more than A$80m the following year.

"Over the weekend, Ten received correspondence from financial advisers Illyria Pty Limited and Birketu Pty Limited, two of the shareholders which guarantee the company's current financial position", company secretary Stuart Thomas said in an update to the ASX this morning.

A day after Ten requested a 48-hour trading halt of its shares while it considered its future, the Australian Securities Exchange said it had suspended the shares indefinitely.

Despite recent success at the Logies and the popularity of the Big Bash cricket coverage, Ten posted a disastrous half-year loss of $232m in April and warned that its future as a "going concern" was in doubt.

The rise of streaming services like Netflix, Stan, Amazon Prime and Foxtel now has put the television industry under pressure, while online media also competes for advertiser dollars.

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