TMS television & media services limited

Dividend Reinvestment Plan, page-4

  1. 4,941 Posts.
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    Hi Ridge,

    A Receiver can only be appointed by the secured creditors. Not by the major shareholders, etc.

    In the context of Hoyts, Village, Amalgamated (etc), they are all unsecured creditors. Therefore, they are at or near bottom of the list (ie: after the secured creditors, employee entitlements, etc, but ahead of shareholders). They would also rank only to the extent that they have debts owed, as opposed to future committed contractual commitments.

    An Administrator can only be appointed by the Board, and would bind together all creditors (secured and unsecured, unless the secured creditors moved to appoint Receivers within a 7-day cooling off period). Again, this does not favour or support the PBL interests.

    Back though to the secured creditors.

    On 30 June 2002, TMS had secured debt in place (under a variety of different facilities) of ~$84m. Of this amount, $79m was current (ie: falling due for payment on or before 30 June 2003).

    Since 30 June 2002, TMS has:
    1)
    reduced its overall debt profile from $84m to $63m (at end August);
    2)
    reduced its available facilities from $99m to $74m;
    3)
    out of the $79m due as current, $23m has been repaid, $18m has been rolled, and new long-term facilities have been put into place for a further $25m;
    4)
    out of the $74m in continuing facilities ($63m used), this makes for >$43m dealt with, and <$31m still to be dealt with, of which a further $6m would have been paid down following receipt of the USA exit down-payment; and
    5)
    the previous breach of baning covenants related to TMS experiencing a net cash outflow during FY02 (the covenant was for nil outflow, to +ve inflow).
 
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