Channel Ten case returns to Federal Court

August 11, 2017

The case involving Network Ten's administrators will return to court today.

Federal Court proceedings for the ailing Channel Ten, which went into voluntary administration in June, are expected to continue on Friday.

Justice David O'Callaghan will deliver a judgment following a hearing in Melbourne in July in which administrator KordaMentha was granted a 120-day extension to its administration period.

That means creditors now have until November 20 to hold their second meeting and decide if it's possible to recapitalise.

Also in July's hearing, concerns were raised about a perceived conflict of interest on KordaMentha's part.

KordaMentha lodged July's proceedings in a bid to ameliorate such a perception given the company had earned nearly $1 million in fees from Channel Ten in the months before it was signed on as the network's administrator.

Australian Securities and Investments Commission (ASIC) lawyer Stewart Maiden told the court "the sheer volume of work" done over three months, with more than 50 meetings that took place, needed examining.

He said ASIC did not claim any actual bias or conflict of interest had occurred.

The network went into administration after billionaire shareholders Lachlan Murdoch and Bruce Gordon did not stretch their guarantee on a $200m debt facility to a new $250m limit.

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