Channel Nine gets a lifeline with approval for sale of ACP Magazines
26 Sep 2012
Struggling media company Nine Entertainment has got a lifeline with the lenders' approval of the $525 million sale of ACP Magazines.
ACP magazines, the magazine arm of Nine Entertainment Co publishes 48 audited titles in Australia, with combined sales of 86 million copies each year.
With the deal, the media company gets a bit of breathing space with the knocking of a part of its $2.8 billion debt.
However, there has been no agreement on refinancing the company's debt which needs to be repaid by February, The Australian newspaper said.
The sale of ACP magazines, including The Australian Women's Weekly and TV Week to German publisher H Bauer gives Nine a different asset mix, which is expected to give lenders a clear sight when attempting to reach an agreement on valuation of the business.
The deal is being considered as an important negotiating tool in Nine's battle with its lenders, however, the group has yet to reach an agreement on its $2.8 billion debt despite a fresh round of talks.
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