The Commonwealth Bank has called in the receivers at the beleaguered Ten Network, appointing PPB Advisory who have been advised to sell the network on behalf of the bank.
CBA is currently owed $200 million by Network Ten through a debt facility that is due on December 23 this year. The current shareholders of the business – namely Bruce Gordon, James Packer and Lachlan Murdoch – have said they would not guarantee the loan sending the company into voluntary receivership on June 14.
It is understood that Gordon, Packer and Murdoch are now providing $30 million in immediate funding so administrators can keep Ten afloat until a buyer can be found. However, the funding will only be made available until August 31.
In a statement to the ASX today, Ten said of the funding: “This will allow the business to continue to trade as a going concern and enable the receivers and managers to undertake a sale process for, or a recapitalisation of, the business and assets of Ten Network Holdings Limited.”
On June 21 the network was offered for sale via a series of ads in Australian broadsheet newspapers with hopes an international buyer could be found.
In a statement over the weekend, PPB said: “PPB Advisory will undertake the sale of Network Ten as a going concern, or the recapitalisation of the business, through a competitive tender program.
“PPB Advisory will also provide immediate funding to Network Ten, backed by the existing shareholder guarantors. This will allow operations to continue while the process to identify a suitable party to purchase or recapitalise the business is conducted.”