The Supreme Court of NSW has ruled in favour of Bruce Gordon’s WIN Corporation to delay the second meeting of Network Ten creditors organised by its administrator to vote on the broadcaster’s sale to CBS.
WIN Corporation made an application to the Supreme Court on Wednesday requesting that Korda Mentha delay the meeting, which was scheduled of Tuesday 12 September, because it claimed the administrator’s report is missing vital information needed for creditors to make a proper decision on the sale.
WIN’s court application was made on behalf of its CEO and Ten director Andrew Lancaster, who claims he has not been paid his directors fees, according to Fairfax.
Furthermore, WIN is seeking rights for all Ten shareholders to vote on the takeover deal and for CBS’s vote to count for just $1.
Representing Korda Mentha in court yesterday, 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, according to The Australian Financial Review.
However, McHugh’s argument was no good, with the creditors meeting being delayed by a week (Tuesday 19 September), while the Supreme Court will hear WIN’s case on Tuesday and Wednesday.
Lachlan Murdoch’s 21st Century Fox is tipped to join the case to have its complaints heard around Korda Mentha’s administration of Ten.
This latest news is just another twist in the whole Ten-CBS saga.
Murdoch and Gordon’s joint bid for Ten was the overwhelming favourite once the Australian Competition and Consumer Commission (ACCC) announced it would not oppose the offer.
However, in a shock move, Ten’s receivers (PPB Advisory) and administrator (Korda Mentha) made the decision to instead hand over the reins to US media giant CBS.