Creditors of the Network Ten will be eager for answers when they meet administrators today. It will be their first opportunity to ask about money they’re owed after the network was placed in voluntary administration almost two weeks ago.
Today’s creditor-only meeting is expected to be tense, with the future of Australia’s third ranking TV Network under a cloud.
Ten’s financial troubles came to a head when its largest shareholders – Lachlan Murdoch, Bruce Gordon and James Packer – refused to continue guaranteeing the company’s outstanding $200 million debt or any future debt facility.
When they pulled the plug, Ten’s board had no option but to place the network in administration.
Since then, Mr Gordon, who owns the regional Win TV Network, and Mr Murdoch, who is co-chair of New Corp, have joined their shareholdings so they can vote as a bloc with more than 22 percent of the company’s shares.
Ten’s troubles prompted the federal government to push ahead with reforms to media laws, which have been tabled but have been held up by parliament’s winter recess. The other major hurdle is the reluctance of a number of cross bench senators to support the changes.
Under the reforms, the licence fee, free to air broadcasters have to pay would be abolished, so would the so called "2 out of 3" rule, which prevents companies owning a TV station, newspaper and radio station in a single market AND the 75 percent reach rule, which currently stops metropolitan and regional organisations from merging.
Without the media reforms, Mr Murdoch and Mr Gordon would be unable to take control of Ten.
In the meantime, administrators, Korda Metha, have said they want to wrap up the administration process within two months.
But this has left Ten staff in limbo. As creditor employees, they will be represented at today’s meeting but are concerned about what administration means for their jobs, with redundancies a real prospect.
Shareholders, who fear their investments are now at risk, will not be able to attend today’s meeting, but will have a private briefing.