Shares in media companies surged after the Ten Network went into voluntary administration.
At the close, Nine was up 6.2% to $1.365, Seven West Media 5.3% to $0.69 and Southern Cross Media 1.7% to $1.17. Ten continues to be in a trading halt.
Ten called in administrators from Korda Mentha after two billionaire shareholders — News Corp co-chair Lachlan Murdoch and TV pioneer Bruce Gordon — refused to increase or extend a $200 million credit facility past December.
The current credit facility of $200 million with the Commonwealth Bank expires on December 23 and company wanted to replace this with a new $250 million loan.
The company in April posted a loss of $232.19 million for the half year in a tough advertising market. At that time, the company said the current debt facility was drawn down by about $66.2 million.
The board of directors said today the company was left with “no choice but to appoint administrators”.