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Friday, October 19, 2012

Nine Lenders Come To Agreement, Nine Avoids Receivership

Per www.globalinsolvency.com:


Thu., October 18, 2012
Nine Entertainment has avoided receivership, with the company's warring lenders reaching an agreement in principle this afternoon, The Australian reported. The US hedge funds Apollo and Oaktree, which are the biggest holders of Nine’s $2.28 billion in senior debt, conceded some extra ground, giving investment bank Goldman Sachs’ mezzanine debt funds a 4.5 per cent stake in a recapitalised, debt-free Nine. Previously, the funds were only prepared to concede a 4 per cent stake. The new Nine will therefore be 95.5 per cent-owned by the senior lenders and 4.5 per cent-held by the Goldman-controlled mezzanine debt funds, which are owed $1bn. The resolution occurred as Nine held a board meeting in Sydney. A relieved-looking Nine chief executive David Gyngell emerged to announce that "there is a deal" and the company, owner of the Nine Network, is now debt-free.

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