The administrator of Network Ten has explained why it decided to hand the reins of the broadcaster over to US studio CBS instead of Lachlan Murdoch and Bruce Gordon, after the joint bidders launched a case in the NSW Supreme Court.
Through his company, WIN Corporation, Gordon requested for the next meeting of Ten’s creditors with Korda Mentha be delayed, claiming the administrator’s report was missing vital information needed for them to make a proper decision on the sale – namely, that it “fails to include adequate information” on the competing bid by Murdoch and Gordon, according to ABC News.
Representing Korda Mentha in court last week, Richard McHugh, SC, described Gordon as a “disappointed underbidder” who should not be given “a free run” to delay the meeting to advance his commercial interests, The Australian Financial Review reported.
However, McHugh’s argument was no good, with the creditors meeting being delayed by a week to Tuesday 19 September).
Korda Mentha has since issued a second creditors’ report comparing the two bids, which said the one made by CBS was “superior” in financial terms, as it would return $32 million to creditors, compared to the $27.6 million from Gordon and Murdoch’s private companies, Birketu and Illyria.
The report also noted that “the CBS transaction was more certain as it had a lower execution risk”.
WIN Corporation’s court case is continuing to be heard in court today and tomorrow.