16th Oct 2012 9:36am | By Editor
NINE Entertainment chief David Gyngell is ‘quietly confident’ the company has struck a deal that will keep the group which runs the Nine Network, Ticketek and digital group Ninemsn from collapse after a day of talks with lenders.
The Sydney Morning Herald reports Gyngell admitted Nine’s chances of survival are now 50/50, better than they were, with sources conflicting as to whether senior lenders, US hedge funds Oaktree Capital and Apollo Global Management, and second-tier lender Goldman Sachs had reached an agreement.
The Daily Telegraph reports Goldman Sachs ‘will receive about $100 million under the deal’.
But the SMH quotes a GS source saying: ‘Our position remains unchanged and talks will continue tomorrow.’
Gyngell has said Nine could go into receivership if the lenders couldn’t come to a compromise on how to refinance the company’s $3.2 billion debt.
‘It’s been a vigiourous debate around valuation,’ Gyngell is quoted as saying in the SMH.
If a deal isn’t made, Nine bosses are expected to fold the business, but the TV network which airs hits series such as Underbelly will continue under the control of an administrator or the senior lenders, should they chose to take ownership.
Gyngell told the SMH he would stay with the company under administration.
Last month Nine Entertainment sold ACP Magazines and its stable of 85 titles to German company Bauer Media, which owns magazines such as Closer and Heat in the UK.
It's a big fall from grace for Channel Nine. For years it was ‘Still The One’ but had to change its slogan after Channel Seven started to routinely beat it from 2007, albeit with a stack of former Channel Nine staff – shame, it was a catchy tune.
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