Friday, 14 September 2018

KordaMentha was recognised at the Turnaround Management Association (TMA) Australia’s National Conference 2018, with Network Ten Holdings Limited (Ten) being awarded Large Company Turnaround of the Year. 

The TMA Awards are Australia's most prestigious turnaround industry awards, showcasing some of Australia's finest turnaround organisations. KordaMentha’s Mark Korda, Jarrod Villani and Jenny Nettleton were appointed Voluntary Administrators of Ten following the withdrawal of financial support by shareholder guarantors which ultimately led to Ten’s inability to finalise restructured content agreements. 

As Voluntary Administrators, KordaMentha’s objectives were to maximise the return to all creditors, ensure the continuation of Ten as a key player in Australia’s media industry, and importantly, to secure the continued employment for Ten’s employees. 

Over the course of five months, KordaMentha: 

  • Took control of Ten and worked with their suppliers and content providers to ensure that viewers around the country continued to enjoy the content they knew and expected from the network. 
  • Renegotiated numerous contracts to match payment terms to Ten’s advertising revenues. 
  • Restructured the working capital profile of the business, which improved working capital funding by approximately $40 million over the forecast period. 
  • Conducted a sale/recapitalisation process resulting in the transaction with US Studio, CBS. 

KordaMentha’s work led to the sale of Ten to CBS on 16 November 2017, resulting in: 

  • Full repayment of the secured creditors (including shareholder guarantors). 
  • 100 cents in the dollar for key content providers who remained with Ten and ongoing trade creditors. 
  • ​Over 60 cents in the dollar for financial and statutory creditors. 
  • Continuity of business and employment. 
  • Improved working capital performance following renegotiation of terms with all major suppliers. 
  • Reconstruction of the executive management structure and reporting lines. 

The award was presented at TMA’s 2018 gala dinner in Sydney on 14 September 2018. 

To learn more about KordaMentha's role in the turnaround of Ten you can read the full case study here.