TV3 owner to be put into receivership today

Monday 17th June 2013

MediaWorks New Zealand, the broadcaster whose stable includes TV3 and Four, and radio stations including Radio Live, the Rock and MoreFM, is expected to be put into receivership today after a planned recapitalisation failed to win over its lenders.

It is understood KordaMentha will run the receivership as part of a restructuring plan to switch assets into a new entity, write down the company's debt, and allow the broadcaster to continue operating.

The Auckland-based broadcaster has been looking at ways to reduce its debt burden after Australian private equity firm Ironbridge Capital bought CanWest's 70 percent stake in 2007 for some $741 million.

MediaWorks' holding company, GR Media Holdings, wrote down the value of goodwill by $241.6 million in a capital restructure last year that brought in US private equity investor Oaktree Capital Management holding a chunk of its debt.

That restructure was to see MediaWorks shuffled into a new holding company for a second time, a write down in the value of its existing debt, new finance facilities provided and lending covenant terms established.

The media company's lenders didn't pursue some $266.7 million owed by the previous holding company, HT Media Holdings, after agreeing to a restructure that gave them equity in the broadcaster, according to the company's first liquidator's report.

BusinessDesk.co.nz

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