The newly appointed receivers of the Ten Network have secured $30 million in funding to keep the free-to-air television business afloat, for the time being.
Christopher Hill, Philip Carter and David McEvoy of PPB Advisory were appointed receivers and managers of Ten Network Holdings on Friday.
In a statement today, the receivers say they have negotiated an amendment and restatement of Ten’s existing finance facility agreement, with continuing support from shareholder guarantors, to a $30 million package, which is available until the end of August.
“This will allow the business to continue to trade as a going concern and enable the receivers and managers to undertake a sale process for, or a recapitalisation of, the business and assets of Ten Network Holdings Limited and the companies in the attached schedule,” the receivers said in a statement.
The appointment of receivers followed the appointment of Mark Korda, Jenny Nettleton and Jarrod Villani of KordaMentha as voluntary administrators on June 14.
Last week Mark Korda said a number of expressions of interest have been made to buy Ten, including a joint bid from major shareholders Lachlan Murdoch and Bruce Gordon.
Ten went into administration when the two billionaire shareholders 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.