Senior lenders can't stymie Nine deal, court rules
THE rescue of Nine Entertainment remains on track, with the Federal Court ruling on Thursday that opponents of a crucial scheme of arrangement cannot stop the deal.
Justice Peter Jacobson said the scheme of arrangement - which would convert all Nine's debt into equity - could go ahead despite opposition from some senior lenders. He said the proposed plan was the ''only opportunity to the company to repay the senior debt''. Otherwise it would be ''highly likely'' the company would be placed in receivership.
Nine owes its creditors almost $3.4 billion. Senior debt totalling $2.24 billion will expire on February 7.
A submission tendered in the Federal Court on Monday said: ''The company will almost certainly not be able to repay the total sum which falls due on that date.''
A group of senior lenders have opposed the scheme on the grounds that they were not involved in negotiating it and will be disadvantaged if it is implemented.
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