WELLINGTON, June 17 New Zealand broadcaster
MediaWorks Ltd was placed in receivership on Monday after its
private equity owners and bankers failed to agree on a
refinancing deal, but new owners have been lined up.
Investors led by Australian businessman Rod McGeoch, a
director of gaming company SkyCity Entertainment Group Ltd
and chairman of Vantage Private Equity Ltd, are set to
take over the company which operates New Zealand's TV3 and
Channel 4 television networks, and a string of radio stations.
"We have put in place a capital structure that will see debt
levels reduced from over NZ$700 million to less than NZ$100
million. This puts the company in a much stronger financial
position," McGeoch said in a statement.
Australian private equity firm Ironbridge bought publicly
listed MediaWorks in 2007, when it was majority owned by
Canadian broadcaster Canwest, for NZ$740 million ($597 million)
in a highly leveraged deal.
But its debt structure became unsustainable after the global
financial crisis, MediaWorks managing director, Sussan Turner
said in a statement.
A group of banks -- Westpac, Rabobank, and RBS --
appointed financial advisory firm KordaMentha to administer the
The receivers said business would continue as usual, funding
would continue to be provided, and there would be no job losses
as a new structure and owners were put in place.