Sharechat Logo

MediaWorks' lenders owed $528.3 mln, receiver says

Monday 19th August 2013

Text too small?

MediaWorks NZ, the broadcaster whose banking syndicate is poised to take control, owed its lenders $528.3 million when they tipped it into receivership, according to the first receiver's report.

The Auckland-based company held total liabilities of $797.4 million against assets of just $329 million as at May 31, of which its banking syndicate was owed the bulk, receivers Brendon Gibson and Michael Stiassny said in their first report. The new capital structure, which will give the lenders ownership, plans to cut the company's debt to less than $100 million.

The receivers said $4.7 million owed to staff as preferential creditors and $4.2 million owed to the Inland Revenue Department will be paid in full.

The debt has grown since Aug. 31 last year when outgoing holding company GR Media reported total borrowings of $496.7 million, including $176.8 million in subordinated and payment in kind shareholder loans.

Last week Gibson and Stiassny signed a conditional sale and purchase agreement with the new holding company for the broadcaster.

The new structure will leave US private equity firm Oaktree Capital as the biggest shareholder with 26.7 percent. Lender RBS will hold 21.9 percent, private equity firm TPG Capital 15.7 percent, Westpac Banking Corp and Rabobank each will hold 14.6 percent, and JP Morgan will hold 6.5 percent.

The deal is expected to settle on Sept. 30, and will transfer the broadcaster's assets to a new company chaired by Australian businessman Rod McGeoch. Former Eyeworks Touchdown boss Julie Christie, best known in New Zealand for a string of reality TV series, and ex-PBL director Martin Dalgleish will join him on the board.

The receivership ended Australian private equity firm Ironbridge's involvement in the business since its debt-funded purchase of CanWest's 70 percent stake in 2007 valuing the broadcaster at some $741 million.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Gold Report 16th July 2019
NZ dollar rises after CPI meets expectations; US dollar weakens
Yili's Westland takeover gets OIO approval
Govt eyes 2025 for farm-level emissions pricing
Govt won't "die in a ditch" for 100% renewable target
NZ 2Q CPI +0.6% on quarter, +1.7% on year
16th July 2019 Morning Report
Suspect company faces liquidation after director dies
NZ dollar holds gains; focus on domestic inflation data
MARKET CLOSE: NZ shares slip as fears over slowing Chinese growth weigh; AMP slumps

IRG See IRG research reports