Nine Entertainment Warns Creditors, Bankruptcy Puts NRL Contract At Risk
Sending Nine Entertainment into receivership would "put at risk vital sports contracts including the record" A$1.1B ($1.15B) deal with the National Rugby League, according to Davidson & Gluyas of THE AUSTRALIAN. 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." Nine Chair Peter Bush and CEO David Gyngell opened separate two-day meetings with the company's lenders Monday 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 execs painted a picture of the impact of receivership on the media company. The first meeting was attended by representatives of U.S. hedge funds Apollo and Oaktree, Nine's original senior lenders, which are owed about A$600M, and Nine management (THE AUSTRALIAN, 9/25).