Nine saved: lenders agree to deal
Nine Entertainment has been saved from administration and possible collapse, with an agreement on Wednesday afternoon reached between bickering lenders.
Lenders responsible for the $3.2 billion in debt, which had threatened to topple the company, have agreed to take ownership of Nine in replacement of the debt.
“We have a fully capitalised business,” said CEO David Gyngell to reporters.
“All those doomsayers out there are going to have to eat their words. We have never had a more powerful balance sheet.
“We are ready to rock and roll for next year.”
Read more: http://www.smh.com.au/business/nine-saved-as-lenders-agree-to-deal-20121017-27qqr.html#ixzz29WqleczD
Senior lenders, including Oaktree Capital and Apollo Global Management, will own a 95.5 per cent stake in Nine.
Goldman Sachs led ‘Mezzanine’ lenders, who had looked likely to lose the entire $1 billion they had invested in second-ranked debt, will receive a 4.5 per cent stake valued at around $100 million.
As details of the agreement are reported, more clarity will emerge around Nine’s potential dealings with TV rights across sport, including Cricket Australia’s upcoming renewal, with current rights expiring in March 2013. No change is expected to the NRL’s contract with Nine.
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