Newspaper ads flog 'rare opportunity' to buy Network Ten

Administrators have placed ads offering a "rare opportunity" to buy Network Ten. Photo / Getty Images

The administrators for Network Ten have placed national newspaper ads seeking a buyer for the troubled broadcaster.

The ads seek expressions of interest in Ten, which was placed into voluntary administration last week after its billionaire backers refused to guarantee a new finance package.

"Rare opportunity to recapitalise or acquire an iconic Australian free-to-air broadcaster listed on the ASX," the ads placed by KordaMentha read.

The "investment highlights" include a "strong and defensible position as the third largest broadcaster in the Australian FTA market which generates c. $3 billion of gross revenue".

"Provider of leading Event TV and live sport with key franchises including MasterChef, The Bachelor and Big Bash League Cricket," the ads read.

"Successfully repositioned in recent years with a c. 2.4 percentage point increase in audience share (CY13 to CY16) and a c. 4.4 percentage point increase in revenue share (CY14 to CY16).

"Transformation strategy currently being implemented which includes the renegotiation of key agreements and whole of business revenue and cost initiatives. Supportive proposed regulatory changes include revised media ownership laws and licence fee relief."

The first meeting of Ten's creditors will take place on Monday, June 26.

Last week, the company announced it was left with "no choice but to appoint administrators" after major shareholders Lachlan Murdoch, Bruce Gordon and James Packer decided against guaranteeing a new $250 million loan to replace the existing $200 million overdraft, which needs to be repaid to Commonwealth Bank in ­December.

Illyria, Murdoch's private investment vehicle, holds 7.5 per cent of Ten shares, while Gordon's Birketu controls 15 per cent. Packer is understood to be keen to sell his 7.7 per cent stake.

According to The Australian, Murdoch - who is the former Ten chairman and current chair of News Corp, publisher of news.com.au - is working on a rescue package with Mr Gordon to refinance the network.

"In the event of a default by Ten of its obligations under the existing facility, there is a risk of Birketu and Ilyria each being exposed to significant liability under their respective guarantees together with a complete loss of their respective investments in Ten's equity," a letter from Birketu to Illyria earlier this month said.

"In such circumstances, given the commonality of the parties' interests in Ten as shareholder guarantors of Ten's debt, it may be in the parties respective commercial interest to consider whether a proposal could be formulated and agreed between Birketu and Ilyria under which Ten's existing secured debt would be repaid and any guarantee support would be removed over an appropriate period."