A creditors meeting for the station will go ahead tomorrow, with CBS now able to vote as a major creditor.
While they’re due to vote on the offer from CBS, the most-watched USA network, on Tuesday, they may still seek to adjourn the ballot in order to assess Murdoch and Gordon’s competing proposal.
Two Australian media moguls have lost a court challenge to CBS Corp’s planned buyout of bankrupt television broadcaster Ten Network Holdings Ltd, allowing the CBS deal to be put to a creditor vote on Tuesday. The meeting was delayed until Tuesday 19th September.
Ten’s creditors are now in control of the company’s future.
Lawyers for Gordon’s interests had sought a declaration that KordaMentha failed to give creditors vital information about a joint bid by Gordon and Lachlan Murdoch when it recommended a proposal by U.S. media giant CBS.
Supreme Court Justice, Ashley Black, states that he was “not satisfied” that Mr Gordon’s lawyers had established any deficiencies in KordaMentha’s creditors’ reports, which would require orders to be made.
Gordon sought to prevent CBS from participating in the vote as one of the biggest creditors to Ten, but that too was rejected.
As part of the recent ruling, Mr Gordon was ordered to pay the other parties’ legal costs.
Murdoch and Gordon must now convince Ten’s administrators KordaMentha to accept a substantially improved 11th hour bid they tabled on Friday.
That meeting is now confirmed to proceed after the court found that Gordon’s claim that the report prepared by the administrators on Ten for creditors did not include all the information it should have.
“That is a matter properly left for their decision”.
Murdoch and Gordon had made a joint bid for Ten through their respective investment vehicles – Illyria and Birketu – but were trumped by CBS when it launched its surprise takeover in August.