Receivers are set to be appointed to Network Ten, which has been in administration for two weeks.
Well placed sources on Friday afternoon said an announcement was imminent that the Commonwealth Bank of Australia would appoint PPB Advisory as receivers over the stricken network.
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Network Ten enters into receivership
PPP Advisory will now look to sell Network Ten, with Lachlan Murdoch and Bruce Gordon looking to purchase the network once media laws are changed by the government. Vision courtesy: ABC News 24.
Meanwhile, the Australian Communications and Media Authority (ACMA) has been keeping an eye on the company in relation to potential breaches of media ownership laws.
"The ACMA is continuing to actively monitor the developments in relation to Network 10," a spokeswoman told Fairfax Media
Ten's directors told shareholders they had "no choice but to appoint administrators" after receiving correspondence from Illyria Nominees and Birketu Pty Ltd, the respective investment vehicles of Lachlan Murdoch and Bruce Gordon.
Both men were guarantors of Ten's existing $200 million debt facility with CBA along with fellow shareholder James Packer. They withdrew crucial support for Ten to apply for a new $250 million loan.
A letter released to shareholders the day after KordaMentha were appointed revealed Illyria – holding 7.5 per cent of shares – and Birketu – holding 14.96 per cent of shares – had formed an association and would be voting as a bloc with their combined 22.47 per cent of shares.
Reports have also surfaced of a letter in which Illyria and Birketu told the board it could no longer draw down on the existing facility because this would incur a debt.
Under existing laws Mr Murdoch cannot control Ten because it would breach the two-out-of-three rule, and Mr Gordon, owner of regional network WIN, is constrained by a rule that prevents a person from owning broadcasting licences that reach 100 per cent of the population.
Both restrictions will be lifted if Senate passes the media reform bill, but the chamber is not sitting again until August 8.
Mr Korda confirmed at the first creditors meeting that he will seek a court order allowing him to delay the administration process, due to the complexity of the matter. However, this could also delay the process long enough for the media reforms to pass, which would allow Mr Murdoch and Mr Gordon to take a controlling stake.