Request for trading halt to ASX
Ten Network Holdings Limited (TEN or the Company) requests that its shares be placed in trading
halt.
- Over the weekend, TEN received correspondence from financial advisers to Illyria Pty Limited
(Illyria) and Birketu Pty Limited (Birketu), two of the shareholders which guarantee the Company’s
current credit facility. That correspondence confirms that those guarantors do not intend to
extend or increase their support for the Company’s credit facilities beyond the term of the current
facility which expires on 23 December 2017. TEN’s Board is considering the position of the Company
in light of the position being taken by Illyria and Birketu and the range of restructuring and
refinancing initiatives it has underway. Pending these determinations over the coming days, TEN
considers that its shares will not be able to trade on an informed basis and, accordingly, requests
the trading halt.
- TEN requests that the trading halt lasts for 48 hours or until an earlier announcement has
been made by the Company.
- TEN expects that an announcement outlining the Board’s determination will end the trading
halt.
- The Company is not aware of any reason why the trading halt should not be granted.
Oh dear…
Well that’s Ten fucked. GG.
So where do we all think this is headed?
Is that it? Close it down?
Or could the government step in?
nope. there is still value there. one good hit show and it will back on top. the problem is no one wants to spend on anything and take risks. they need an owner who is willing to spend on programming and take those risks on new formats
I wonder if it is tactical. If the company goes into receivership, its expensive output deals will lapse and if it wants them again it can negotiate a lower price or just pick and choose the programs it wants.
Well that’s the silver lining. Receivership, whilst ugly, is not always a bad thing.
I’d imagine there might be a few panicked phone calls to Canberra to see if the media law changes are going to be put to parliament soon (not that the current timing is good, the winter recess starts imminently)
The worry there will be that Ten could be left with nothing, particularly if there is interest from the other networks to pick up extra content
What would the other networks want? Maybe a couple of series as filler but the other networks wouldn’t really want pay any big money for them.
Mediaworks did this in NZ, giving up the Fox contract. Lost The Simpsons and a host of shows which went elsewhere. Have replaced it with tent pole reality and not a lot else in prime time. But it’s still alive.
Not for workers. I imagine news staff are not particularly pleased.
You would think cricket Australia will be watching how This plays out.
If Ten is placed into administration again, won’t it void all its broadcast contracts with sporting organisations, including the Big Bash League deal with Cricket Australia, the Australian Rugby Union, Supercars, F1, and the recently signed A-League deal with Fox Sports? That increases the likelihood Nine will scoop up the BBL and retain its international cricket deal with CA as well.
Almost a year on from the affiliation switch, I wonder how Bruce Gordon is feeling about switching alliances to the ailing network now?
Personally I can see Australia’s 3rd commercial network surviving (I certainly hope it does, because a Seven/Nine duopoly sounds about as dangerously uncompetitive as Coles/Woolworths is in retail), but unfortunately with some major cutbacks in things like news and local programing for the multichannels. Perhaps we might even see One/Eleven merge or close down?
If the worst case scenario was to happen, Network Ten closing down…I think Seven & Nine would be interested in some of Ten’s higher profile programs & personalities but that’s about it really.
If it goes into receivership, which has happened before to both Seven and Ten networks, it can continue to operate but the receivers will seek to find a new buyer and work to settle any debt
Channel Ten - There’s Nothing Going On Around Here…
Question is who would be willing to taken on the debt though? Well il be hoping for the best outcome for Network. I would hate to see it be shut down (less likely outcome)
Just feeling for those employees with the uncertainty hanging in the cloud.
