Ten Network creditors have begun to receive their promised dividend payout following the embattled broadcaster’s $41 million takeover by US media giant CBS.
Ten’s administrators KordaMentha said most creditors – including its content providers – will be paid 100 cents in the dollar, after CBS provided $40.6 million to fund a dividend.
Financial, statutory and other creditors will received a first dividend of 45 cents in the dollar, with an estimated final dividend of 21 cents to be paid before June, while Fox will received a fixed payment of $12 million, KordaMentha said.
Administrator Mark Korda said the outcome for everyone involved was outstanding under the circumstances.
‘The network has a strong and stable new owner, a talented leadership team and a loyal, creative staff whose support was critical to the successful restructure,’ Mr Korda said in a statement on Wednesday.
‘The viewers, advertisers, content partners and suppliers also helped the network get through a challenging period.
‘And most of the creditors are now getting all their money back’.
CBS took control of Ten in November, after a court granted the transfer of shares to the US media giant following delays from three minor shareholders who sought to block the deal but failed.
The NSW Supreme Court found there was no prejudice in the deal, which left Ten shareholders with no payment for the loss of their shares.
The CBS takeover trumped a competing offer from Ten shareholders Lachlan Murdoch and Bruce Gordon, and was almost unanimously backed by Ten’s creditors, including the broadcaster’s employees, at a meeting in September.
The network slipped into administration after Mr Murdoch and Mr Gordon, along with fellow shareholder James Packer, refused to back a new funding deal following the expiry of a $200 million debt facility.