WIN founder Bruce Gordon has lost his legal challenge against Network Ten administrator KordaMentha, as a new bid for the commercial broadcaster from Mr Gordon and News Corp executive co-chairman Lachlan Murdoch hangs in the balance.
Mr Gordon’s lawyers claimed the KordaMentha creditors’ report had failed to provide adequate details on the businessman’s initial bid with Mr Murdoch. The case was dismissed in the NSW Supreme Court on Monday morning by Justice Ashley Black, who was not satisfied the plaintiffs had established any deficiencies in the report that warranted the postponement of creditors’ meetings.
The legal action was taken launched on September 6 in hopes of preventing a second creditors’ meeting, expected tomorrow, which will discuss the rival bid for the broadcaster by American media company CBS.
“Any challenge to the outcome of that meeting is properly brought after the event,” Justice Black said as he delivered his ruling.
KordaMentha is in support of CBS’ bid. Administrators must decide whether to put the revised bid by Mr Gordon and Mr Murdoch before creditors at the meeting.
CBS’ bid will use the debts it is owed by the broadcaster to make the purchase, absorbing 100 per cent of the company, providing shareholders with nothing.
The revised bid has been made possible by the passing of media reforms last Thursday that repealed the two-out-of-three rule. The rule disallowed a single media owner from owning all three traditional broadcast mediums – newspapers, radio and television – in the one market.
It is understood the latest bid from the businessmen will offer creditors up to $55 million for the broadcaster, $23 million more than that of rival CBS.