The Plan That Could Potentially Save Network Ten
Yesterday it was announced that Network Ten would be going into voluntary redundancy after a $250 million debt refinancing agreement was rejected by shareholders Lachlan Murdoch, Bruce Gordon and James Packer.
Since the announcement, many people began worrying about the future of the third ranked Australian commercial network and the shows that it produces.
However, it is now being reported that a plan is in the works that is set to save the Network from its demise.
Two of the key stakeholders, Mr Murdoch and Mr Gordon have apparently teamed up to take the broadcaster private.
The pair hold a combined total of 22.7 per cent of Network Ten through their private investment companies, and have confirmed that they have an "agreement" with the network.
Mr Gordon's company told the stock exchange, "Birketu and Illyria have agreed to work together exclusively to facilitate the potential formulation, negotiation and implementation of a restructure proposal."
Ten has since spoken about their voluntary administration, saying the board had "no choice" but to appoint administrators, after failing to gather funds to repay debt due back in December.
However, administrator Mark Korda from KordaMentha has guaranteed that the network will continue to operate as usual as they consider their options in refinancing the company.
"The administrators are confident that the network is an attractive asset which will find a buyer or will be recapitalised," he said.
Looking at the bigger picture, Federal communications minister Mitch Fifield has called Ten's situation is a "wake up call for opponents of media reform and has asked for a media reforms package to be passed, in efforts to reduce costs including broadcast license fees.
This media reform legislation will be proposed to the House of Representatives later today.