Ten Network (ASX: TEN) has been rescued by a package supported by its biggest shareholders which has allowed it to avoid another damaging equity raising

Tom McKay

Ten Network (ASX: TEN) has been rescued by a package supported by its biggest shareholders which has allowed it to avoid another damaging equity raising. The $200 million loan facility from James Packer, Lachlan Murdoch and Bruce Gordon will incur an unspecified fee and be secured against assets, and will be used to invest in programming to help stem Ten's decline. Without this, the network would have little money to pursue growth due to strict loan covenants despite paying off most of its debt. Ten had already undergone two share issues recently, and there is uncertainty about whether even the most committed shareholders would entertain another. With this in mind, the large shareholders are rolling the dice again on the company and its strategy but it will be a long-term game with ratings taking a while to improve and a stock re-rating requiring even more time. (VIEW LINK)


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