END OF ERA IN AUSTRALIAN MEDIA TODAY
October 27th 2008 03:49
It’s the end of an era in Australian media: rumours circulated over the weekend that media mogul James Packer was expected to end his family's half-century assocation with the Nine television network by stepping down from the board of its parent company PBL Media.
Packer has reportedly refused requests from his joint venture partner to inject $75 million into the debt-laden company.
His Consolidated Media Holdings is expected to announce that it will provide no further financial support to PBL Media.
Today ACP (Australian Consolidated Press) released this statement:
PBL Media today announced the appointment of Mr. Andrew Cummins and Mr. Ben Hawter to the board of PBL Media following the resignation of Consolidated Media Holdings directors Mr. James Packer and Mr. John Alexander.
Mr Cummins and Mr Hawter are both representatives appointed by Red Earth Holdings whose ultimate shareholders comprise funds advised by CVC Capital Partners (“CVC”).
Announcing the changes the Chief Executive Officer of PBL Media, Ian Law, said “We would like to thank Mr Packer and Mr Alexander for their input to PBL Media.
“They have both made a significant contribution to the company since it was formed in November 2006 following the sale by Publishing and Broadcasting Limited of its 50% interest to CVC.
“PBL Media has also benefited from their continued support since September 2007 when Consolidated Media Holdings (CMJ) sold an additional 25% stake in PBL Media to CVC.
“But the reality of these changes in shareholdings over time is that the directors from Consolidated Media Holdings have become less involved over time in the business.
“Further, as a company we have reached a point where much of the structural change that was needed to ensure a smooth transition to the new entity is now in place. The turnaround in the performance of the Nine Network is a good example of that.”
Mr Law said the resignation of the CMH representatives from the board this week was logical given the announcement by Consolidated Media Holdings that it would not be contributing further equity to PBL Media.
Mr Law said PBL Media and representatives of its majority shareholders have had discussions with a number of the Senior Debt and Mezzanine note lenders with a view to restructuring the financing facilities of the business.
Mr Law said there have been no indications in those discussions to date that lenders are opposed to such a restructure in the context of a recapitalization of the PBL Media group. But it was too early to be specific in any sense or to predict an outcome, he said.
Mr Law said PBL Media has debt facilities including Senior Debt facilities and Mezzanine Note facilities totally $4.5 billion of which $4.2 billion were drawn at 30 June 2008.
He said as part of its financing facilities the Group is subject to certain customary financial covenants measured on a quarterly basis. The Group has been in compliance with all of its financial covenant requirements to September 2008.
He said there are no refinancing events due for the Senior Debt until 7th February 2013 and until 7th April 2014 for the Mezzanine Notes. Amortisation of the Senior Debt over the next 12 months requires a repayment of approximately $22m in December 2008 and approximately $22 million in June 2009.
Packer has reportedly refused requests from his joint venture partner to inject $75 million into the debt-laden company.
His Consolidated Media Holdings is expected to announce that it will provide no further financial support to PBL Media.
Today ACP (Australian Consolidated Press) released this statement:
Mr Cummins and Mr Hawter are both representatives appointed by Red Earth Holdings whose ultimate shareholders comprise funds advised by CVC Capital Partners (“CVC”).
Announcing the changes the Chief Executive Officer of PBL Media, Ian Law, said “We would like to thank Mr Packer and Mr Alexander for their input to PBL Media.
“They have both made a significant contribution to the company since it was formed in November 2006 following the sale by Publishing and Broadcasting Limited of its 50% interest to CVC.
“PBL Media has also benefited from their continued support since September 2007 when Consolidated Media Holdings (CMJ) sold an additional 25% stake in PBL Media to CVC.
“But the reality of these changes in shareholdings over time is that the directors from Consolidated Media Holdings have become less involved over time in the business.
“Further, as a company we have reached a point where much of the structural change that was needed to ensure a smooth transition to the new entity is now in place. The turnaround in the performance of the Nine Network is a good example of that.”
Mr Law said PBL Media and representatives of its majority shareholders have had discussions with a number of the Senior Debt and Mezzanine note lenders with a view to restructuring the financing facilities of the business.
Mr Law said there have been no indications in those discussions to date that lenders are opposed to such a restructure in the context of a recapitalization of the PBL Media group. But it was too early to be specific in any sense or to predict an outcome, he said.
Mr Law said PBL Media has debt facilities including Senior Debt facilities and Mezzanine Note facilities totally $4.5 billion of which $4.2 billion were drawn at 30 June 2008.
He said as part of its financing facilities the Group is subject to certain customary financial covenants measured on a quarterly basis. The Group has been in compliance with all of its financial covenant requirements to September 2008.
He said there are no refinancing events due for the Senior Debt until 7th February 2013 and until 7th April 2014 for the Mezzanine Notes. Amortisation of the Senior Debt over the next 12 months requires a repayment of approximately $22m in December 2008 and approximately $22 million in June 2009.
| 26 |
| Vote |
Subscribe to this blog
