The television company fears viewers will hear rumbling both from construction vibration and then from trains. Photo / Dean Purcell
MediaWorks NZ, the broadcaster whose banking syndicate is poised to take control, owed its lenders $528.3 million when they tipped it into receivership, according to the first receiver's report.
The Auckland-based company held total liabilities of $797.4 million against assets of just $329 million as at May 31, of which
its banking syndicate was owed the bulk, receivers Brendon Gibson and Michael Stiassny said in their first report. The new capital structure, which will give the lenders ownership, plans to cut the company's debt to less than $100 million.
The receivers said $4.7 million owed to staff as preferential creditors and $4.2 million owed to the Inland Revenue Department will be paid in full.
The debt has grown since August 31 last year when outgoing holding company GR Media reported total borrowings of $496.7 million, including $176.8 million in subordinated and payment in kind shareholder loans.
Last week Gibson and Stiassny signed a conditional sale and purchase agreement with the new holding company for the broadcaster.
