After media reports across the long weekend about the future of Network Ten and whether or not existing shareholders would be willing to support a new line of credit the company was seeking, the broadcaster has this morning asked the ASX to place the shares in a trading halt.
The ASX has agreed to the request and shares are not able to be traded until Thursday June 15 of earlier if Ten releases an announcement about its financial plan.
In a letter to the ASX this morning, Ten Network company secretary Stuart Thomas said:
1. Over the weekend, TEN received correspondence from financial advisers to Illyria Pty Limited (Illyria) and Birketu Pty Limited (Birketu), two of the shareholders which guarantee the Company’s current credit facility. That correspondence confirms that those guarantors do not intend to extend or increase their support for the Company’s credit facilities beyond the term of the current facility which expires on 23 December 2017. TEN’s Board is considering the position of the Company in light of the position being taken by Illyria and Birketu and the range of restructuring and refinancing initiatives it has underway. Pending these determinations over the coming days, TEN considers that its shares will not be able to trade on an informed basis and, accordingly, requests the trading halt.
2. TEN requests that the trading halt lasts for 48 hours or until an earlier announcement has been made by the Company.
3. TEN expects that an announcement outlining the Board’s determination will end the trading halt.
4. The Company is not aware of any reason why the trading halt should not be granted.