By Paul McBeth
June 17 (BusinessDesk) - MediaWorks New Zealand, the broadcaster whose stable includes TV3 and Four, and radio stations including Radio Live, the Rock and MoreFM, is expected to be put into receivership today after a planned recapitalisation failed to win over its lenders.
It is understood KordaMentha will run the receivership as part of a restructuring plan to switch assets into a new entity, write down the company's debt, and allow the broadcaster to continue operating.
The Auckland-based broadcaster has been looking at ways to reduce its debt burden after Australian private equity firm Ironbridge Capital bought CanWest's 70 percent stake in 2007 for some $741 million.
MediaWorks' holding company, GR Media Holdings, wrote down the value of goodwill by $241.6 million in a capital restructure last year that brought in US private equity investor Oaktree Capital Management holding a chunk of its debt.
That restructure was to see MediaWorks shuffled into a new holding company for a second time, a write down in the value of its existing debt, new finance facilities provided and lending covenant terms established.
The media company's lenders didn't pursue some $266.7 million owed by the previous holding company, HT Media Holdings, after agreeing to a restructure that gave them equity in the broadcaster, according to the company's first liquidator's report.