New Owners Proposed for NZ Broadcaster

AUCKLAND: Debt-laden MediaWorks, which operates the TV3 and FOUR networks in New Zealand, has been placed in receivership but its proposed new owners have expressed confidence in the "opportunities ahead for the business."

Rod McGeoch will serve as chairman of the company that has proposed to purchase MediaWorks. Brendon Gibson and Michael Stiassny of financial advisory firm KordaMentha have been appointed to oversee the receivership of MediaWorks NZ and its subsidiaries.

McGeoch commented, “I’m upbeat about the opportunities ahead for the business. It goes without saying that the new company needs the right capital structure to continue successfully. We have put in place a capital structure that will see debt levels reduced from over $700 million to less than $100 million. This puts the company in a much stronger financial position. I see a positive future built on the back of the current strong trading performance."

He continued, “MediaWorks has an experienced management team and a loyal and dedicated staff who work really hard and produce great radio and television. We are continuing our discussions with the receivers and hope to have a plan in place shortly."

Should the transfer of ownership proceed, McGeoch will be joined on the new company’s board by TV personality Julie Christie. Other appointees will be announced soon.

The private-equity group Ironbridge Capital acquired MediaWorks from CanWest in 2007. In addition to TV stations, MediaWorks operates a number of radio stations.