Paramount Australia & New Zealand

Well the increased CBS bid means Fox may have gained something (increased content licence payment) from their pathetic court case (depending on legal expenses), but WIN/Gordon remain complete losers.

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No idea how this works, but somehow Ten shareholders can claim a tax deduction if they lose all their shares by being transferred to CBS.

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With Lachlanā€™s influence over Fox, they would still be unlikely to vote for CBS. However, it negates one of the arguements that Bruce & Lachlan had about the CBS bid. They were arguing (amongst other things) that the CBS offer was discriminatory and was open to potential legal action from Fox because they were getting a lower % than other creditors. This somewhat reduces that claim, however Fox will still be getting the lowest % return.
It also means, as you said, that Fox are better off under the CBS bid than the B/I bid. While this might not influence voting, if the judge in the appeal hearing deems it necessary to determine which big is in fact better, CBS have a better chance of winning.

I donā€™t think any judge will be determining which bid is betterā€¦ even on appeal.

The crux of the appeal is that Gordon thinks CBS shouldnā€™t be able to vote on its own proposal. It is a very tenuous argument at best. The previous judge was not convinced even in the slightest and that KordaMentha has acted appropriately as administrator. Iā€™m not sure what new argument Gordon can present on appeal.

Basically it comes down to capital gains tax. Not all shareholders would get the benefit, but most would.

The general concept is that tax is paid on any profits on investments (capital gains), and just like how a business can deduct any expenses and losses, tax is credited for any losses on investments (capital losses).
For example, if I sell my shares in Company A for a profit of $500,000, and also sell my shares in a Company B for a less of $200,000 - my net profit is $300,000 - so Iā€™ll only have to pay tax on that $300,000.

Since the value of Tenā€™s shares will drop to nothing when the shares are lost, all shareholders will have a capital loss on those shares equal to whatever they bought them for (approximately, there are also adjustments for inflation depending on how long the shares have been held).

Most shareholders will benefit here, since theyā€™ll have other shares that theyā€™re trading so will have a capital gain on other shares to offset that against - and the capital loss can be kept to be used against gains in future years if itā€™s not used up this year.
A small number wonā€™t benefit however since they might only have Ten shares, and no other investments to generate a capital gain on as a capital loss cannot be offset against ordinary income.

I agree.

He doesnā€™t need one. In fact he shouldnā€™t, because he should have used all his arguements in the first case. He could really only get new arguements based on what changes between now and the appeal - such as the outcome of the creditors meeting.
Even with no new arguements, we does have a slim chance of a different result - a judge in a higher court is not bound to support any decision made by a lower court, even on the same fact.
However, it would seem very unlikely that that would occur.

As of this morning, that appeal is yet to be lodged.

Thanks for the explanation. Stephen Mayneā€™s advice for Lachlan:

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How does CBS have so much cash to spend on buying Ch 10? Or is Ten quite cheap for CBS to acquire? Apart from Gordon and Murdoch are there no Aussie companies that would want Ch 10?

So three options.

  1. heā€™s fucking late
  2. heā€™s gotten advice that an appeal would be thrown out/be an expensive waste of time
  3. heā€™s given up based on CBSā€™ maneuver this morning.
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Yes because Ten has a lot of debt owing to CBS so they can use that amount to offset the purchase price

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Creditors meeting is in progress.


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In the first image that is CBS Managing Director Asia Pacific Stephen White (second right) according to photo credit. Also in attendance Hugh Rimmington and Daniel Sutton.

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The Australian reports Gordon has held off filing appeal. Perhaps got advice it was a waste of time. They can still battle CBS in court for when shares are transferred.

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And countingā€¦

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Great that they put it to a vote as there was speculation from that idiot Darren Davidson from the Australian that KordaMentha would delay the vote based on the new cbs deal.

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That didnā€™t take long!

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Congratulations to the very sensible creditors for voting on cbs. Now we need this to pass through the court and FIRB.

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