Ten seeks expressions of interest

The administrators of the parent company of Australia’s third-ranked Ten Network have called for expressions of interest to recapitalise or acquire the broadcaster.

Ten’s franchises include MasterChef Australia

KordaMentha, which took control of Ten Network Holdings on June 14, placed ads in national newspapers today.

The ads note the Ten group generates annual revenues of about A$3bn (US$2.2bn), with key franchises including MasterChef, The Bachelor and the KFC Big Bash League cricket.

The administrators expect the sale or recapitalisation process will take around 60 days and involve a range of interested parties from around the world.

However, The Australian newspaper quoted a KordaMentha source as saying the call for expressions of interest does not mean the administrator is abandoning attempts to recapitalise the business and that the two processes can run in parallel.

Ten was placed in voluntary administration after failing to secure the backing of its billionaire shareholders Lachlan Murdoch and Bruce Gordon to renew or expand a Commonwealth Bank of Australia loan of A$200m, which expires in December.

Gordon and Murdoch have agreed to pool their stakes in Ten, a ploy that some analysts said could enable the pair to take the business out of administration and into private hands.

Gordon’s investment vehicle Birketu is the largest shareholder with 15%, while Murdoch holds 7.5% through his Illyria company.

Neither is allowed to own more than 15% under cross-media laws that the government aims to reform in legislation that was passed this week by the house of representatives but is yet to be approved by the senate. The Labor party and the Greens are opposed to sections of the bill.

The first meeting of Ten’s creditors since the administrators took over is scheduled for June 26 in Sydney.