The owner of TV3 and half of the country's radio stations is going into receivership this morning. Photo / NZ Herald
The owner of TV3 and half of the country's radio stations is going into receivership this morning. Photo / NZ Herald
Taxpayers may wind up covering for MediaWorks again with an unusual restructuring deal that appears to free them from a potential $22 million obligation to the Inland Revenue department.
Banker lenders - including Westpac, the Royal Bank Of Scotland, Rabo Bank and the Bank of Scotland - were part ofa consortium that called in receivers KordaMentha.
But the key role for receivers as they managed the going concern will be selling it back to a new firm the lenders control have shed potential obligations to IRD.
Senior lenders - owed around $400 million - have formed a new company with the debt having been reduced from $700 million to $100 million along the way.
The lenders - which also includes Morgan Stanley, hedge funds TPG Oaktree Capital Management - have been talking about a restructuring for months and with bankers at the start of the year.
But given the same parties are involved in both the disposal and the purchase of the assets - the second part of the deal - going from receivership to the new entity - should not take long.
Michael Stiassny of KordaMentha said the potential obligation to Inland Revenue Department taxes will be "left behind" in the changeover.