Channel 10 has just days to avoid going bust

Some of your favourite programs could be in danger if Channel 10 doesn’t come up with at least $200 million to cover its massive overdraft. 

Ten Network Holdings’ shares were placed on a trading halt this morning after three of its key backers pulled out of a new, $250 million funding deal to refinance the $200 million loan. 

The Australian reported that big Ten shareholders Lachlan Murdoch, Bruce Gordon and James Packer decided not to guarantee the new funding, which would’ve replaced the existing overdraft.

The network faces the prospect of going into voluntary administration if the loan cannot be refinanced when it comes due to the Commonwealth Bank of Australia in December. 

In a letter to the Australia Stock Exchange requesting the halt this morning, Ten Network’s company secretary Stuart Thomas said the company had received written correspondence from Illyria, an investment vehicle run by Murdoch, and Birketu, run by Gordon. Those investment vehicles are among the guarantors Ten’s finances.

“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,” Thomas said.

Illyria, which is Murdoch’s private investment vehicle, holds 7.5 per cent of Ten shares; Gordon’s Birketu controls 15 per cent, and James Packer is understood to want to offload his 7.7 per cent stake entirely, according to Fairfax Media.

Thomas asked the ASX for Ten shares to remain in a trading halt for at least 48 hours while the company considered its position and “the range of restructuring and refinancing initiatives underway”.

It’s a tough market for free-to-air television at the moment, as streaming services such as Netflix, Stan, Amazon Prime and Foxtel continue to rise in popularity. 

Despite Ten being home to hit shows The Bachelor, Masterchef and Big Bash cricket, they company admitted at its recent half-year results that it may not be able to continue after revealing a $232.2 million loss.