El Diablo
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http://www.theaustralian.com.au/med...rl-if-talks-fail/story-e6frg996-1226480582335
this is why the commission got 9 to pay $90 million in advance
would be great if 9 went arse up and Ten or Seven got the rights and offered live coverage of the 3 games
Nine warns creditors on NRL if talks fail
by: Darren Davidson Richard Gluyas
From: The Australian
September 25, 2012 12:00AM
SENDING Nine Entertainment into receivership would put at risk vital sports contracts including the record $1.1 billion deal with the National Rugby League, Nine management warned creditors at the opening of crucial rescue talks for the second-placed broadcaster.
Nine told its creditors that putting the company in the hands of receivers would damage its brand and foster negative public and market sentiment.
The talks aimed at ending a dispute between creditors of Nine kicked off yesterday and went late into the night with no sign of a break in the deadlock.
Nine chairman Peter Bush and chief executive David Gyngell opened separate two-day meetings with the company's lenders yesterday at the Sydney offices of the group's lawyers, Gilbert + Tobin.
On day one of the talks, which were described as "amicable and civilised" by insiders, detailed information on Nine's business was discussed and executives painted a picture of the impact of receivership on the media company.
The first meeting was attended by representatives of US hedge funds Apollo and Oaktree, Nine's original senior lenders, which are owed about $600 million, and Nine management.
Nine executives stressed that consensual agreement must be reached by the middle of next month, and there was broad agreement on this strategy. A second meeting involved Goldman Sachs, which manages funds that are owed $1.1bn, and Nine private equity owner CVC Asia, which has formed an alliance to try to salvage its position, as well as Apollo and Oaktree.
News of the meetings was revealed by The Australian on September 19, when it was reported Mr Gyngell would mediate talks in Sydney to try to bridge the gap in valuations of the company put forward by Apollo and Oaktree, in one camp, and Goldman Sachs in the other.
The talks come as the countdown continues to the February maturity of Nine's $2.8bn in senior debt, of which Apollo and Oaktree hold more than $1bn.
If the parties fail to strike a consensual deal by the middle of next month, Nine's directors are unlikely to be able to sign off the accounts and will be forced to call in voluntary administrators. The senior lenders will then call in receivers.
The objective will be to break the valuation impasse between Goldman and the US distressed debt funds.
Apollo and Oaktree did not put forward a valuation yesterday. "And nor would you expect them to," an insider said.
Goldman ascribes a much higher valuation to Nine based on a trading multiple of 10. Apollo and Oaktree argue that value appears only in the senior debt and currently believe a multiple of about five should be applied.
Under the hedge funds' proposal, CVC Asia Pacific's $1.9bn in equity is worth nothing and the mezzanine debt worth little.
this is why the commission got 9 to pay $90 million in advance
would be great if 9 went arse up and Ten or Seven got the rights and offered live coverage of the 3 games