CBS’s Ten takeover hit by further delay

CBS’s takeover of Network Ten is not yet complete

CBS Corp’s takeover of Network Ten in Australia has been delayed further after administrators consented to a court order to adjourn the second meeting of creditors until September 19.

Creditors were due to meet on September 12 to vote on CBS’s proposal to pay most of Ten parent company Ten Network Holdings’ creditors in full and on the proposed deed of company arrangement (DOCA) set out by administrator KordaMentha.

However, following an application from Ten’s representatives, the courts have pushed back the second meetings by a week.

Administrator Mark Korda said the application was “disappointing,” as it would hinder the remuneration to staff and creditors outlined in CBS’s offer.

Resolving the matters before the court ahead of the second meetings, he said, would provide creditors with greater certainty that the outcome of the meetings would be binding on all parties.

CBS moved to buy the commercial broadcaster at the end of August, using its position as the struggling network’s biggest creditor.

The US studio has already paid A$143m (US$114m) to secured creditor Commonwealth Bank of Australia and billionaire shareholders and loan guarantors Bruce Gordon, Lachlan Murdoch and James Packer.

Other creditors to be paid in full include employees and key content providers, such as prodcos Endemol Shine Australia and ITV Studios Australia. Additionally, CBS agreed to underwrite Ten’s operations until the implementation of the DOCA.

“The administrators’ recommendation to creditors followed an exhaustive sale and recapitalisation process and a comparison of the likely returns to creditors under all offers,” Korda said.

“In recommending the CBS proposal to creditors, the receivers, the administrators and [financial advisor] Moelis Advisory agreed the transaction provided the best return to creditors as a whole and had a high level of execution certainty.

“The application by the plaintiffs is disappointing as it delays the outcome for employees and creditors provided for under the CBS proposal.”

It was previously reported that KordaMentha hoped to complete the sale by mid-October, with payouts to most creditors delivered by the end of the year. 21st Century Fox stands to lose a substantial amount of the A$450m it claims it is owed by Ten as part of the deal.