Very interesting to read that Lachlan Murdoch threatened to sue all the directors of Ten if they went ahead with a recovery plan.
Conflicts Emerge Over Ten Collapse
Ten Network creditors will meet for the first time with administrators in Sydney next Monday as questions are being asked about the way the company went into administration on Wednesday and the roles of two major shareholders, Lachlan Murdoch and Bruce Gordon. Speculation has centred on the two billionaire shareholders possible buyers of Ten if it goes into liquidation. http://www.sharecafe.com.au/sharecafe.asp?a=AV&ai=44383
Maybe Ten could run a Telethon but instead of the money going to charity, it could go directly to the network and it’s shareholders. Now there’s a tongue in cheek mock idea for you!
They might as well give it a crack based on that video. They have nothing to lose and own much of the equipment needed to run one and employ the people needed to do it. I don’t think I’ve ever seen a Telethon purely for a non charitable cause before until seeing that video.
“The CBS deal was done,” a person involved said. “FOX was dragging its feet all the way.” One article suggested a FOX US contact was unreachable in the crucial hours leading up to administration.
But other sources do not agree with that account, with suggestions deals with TEN were agreed in principle.
Whilst CBS regard TEN as a loyal customer and were willing to cut the network a break to keep it afloat, FOX agreed to a replacement deal for TEN one hour after the company was put into administration.
Hmmm. Agreed in principle doth not seal a new deal. Isn’t it ironic that FOX came to an agreement one hour after Ten entered administration, AND the fact that Murdoch had threatened to sue Ten if they went with a recovery plan over voluntary administration.
Murdoch & Gordon are tightening the screws on Ten:
Illyria Nominees and Birketu are the respective investment vehicles of billionaire shareholders Lachlan Murdoch and Bruce Gordon, who told the board on Friday evening they would no longer guarantee a key loan, putting the company at risk of insolvency.
According to correspondence published in The Australian Financial Review, Illyria Nominees and Birketu then reminded directors in a letter on Monday evening they would be in breach of their directors’ duty to incur debt while insolvent.
“Any drawdown under the existing facility will amount to the incurring of a debt regardless of its purpose,” the letter states.
“As a company such as Ten approaches insolvency, its directors also have an overriding duty to act in the best interest of the creditors, which includes Birketu and Illyria.”
Without access to the $200 million facility provided by the Commonwealth Bank and guaranteed by Gordon, Murdoch and fellow shareholder James Packer, the administrators may run out of options. They have scheduled a creditors meeting for Monday, June 26, in Sydney, and will examine the options.