Network 10 creditors have accepted the proposed takeover bid from American media company CBS, voting to proceed with the meeting today despite a revised joint offer by News Corporation executive co-chairman Lachlan Murdoch and WIN founder Bruce Gordon.
Creditors voted overwhelmingly in favour of CBS offer at the meeting, which had been sweetened overnight to give trade creditors $40 million, rather the $32 million first offered.
A spokesperson for the US company said: “CBS is pleased by the overwhelming support from the creditors and employees this morning. We look forward to completing this transaction and working with the terrific team at Ten to build and expand upon the great legacy of the network in Australia.”
CBS will use debt owed by the broadcaster to make the purchase, with US television network Fox to receive a payment of $12 million based on the current contract with Network 10. The creditors trust warranty of $5 million will be canceled.
The deal is expected to be completed in four to six weeks 4-6 weeks, subject to Foreign Investment Review Board – and any subsequent legal action by Mr Gordon.
Mr Gordon postponed this morning a planned appeal against the rejection by the NSW Supreme Court of his action over the KordaMentha creditors’ report. He had claimed the report lacked transparency over his joint offer, however Justice Ashley Black found these claims to be unsubstantiated.
If the appeal is successful, today’s creditors’ vote will be declared null and void.