Australia's Nine makes new proposal on debt with lenders -sources
By Victoria Thieberger and Narayanan Somasundaram
MELBOURNE/SYDNEY, Oct 9 (Reuters) - CVC Capital Partners Ltd's beleaguered Australian television network Nine has put forward a new proposal to senior lenders to restructure some $3.2 billion in debt, three sources familiar with the negotiations said on Tuesday.
It is the first time that Nine Entertainment Co's management has put forward its own plan to try and reach a compromise between the lenders and prevent Nine from falling into the hands of receivers, the people said, speaking on condition of anonymity.
The lenders are discussing a debt-for-equity swap that would give them control of the network and any deal is expected to wipe out CVC's $1.8 billion in equity in the business -- the largest ever loss on a single private-equity deal in Asia.
The people declined to provide details about the fresh proposal from Nine management, saying that no agreement had been reached and none was expected on Tuesday.
CVC and Goldman Sachs, which have had one plan for a debt-for-equity swap rejected by hedge funds that own most of the network's senior debt, declined to comment.
CVC paid A$5.3 billion in cash and debt for Nine in two deals during at the peak of the buyout boom in 2006-2008, overloading on cheap debt just before the global financial crisis hit.
(Additional reporting by Stephen Aldred in Hong Kong; Editing by Edwina Gibbs)
Keywords: AUSTRALIA NINE/CVC