Put yourself in the shoes of the independent non-executive directors of Ten Network Holdings and it is easy to understand why they rolled over so quickly in the face of threats from Lachlan Murdoch and Bruce Gordon.
The directors had legal advice that the company could continue to draw down a $200 million loan facility from Commonwealth Bank of Australia. This loan was guaranteed by Murdoch, Gordon and James Packer.
A loan guarantee includes a legally binding obligation on the guarantor to meet their obligations until the expiry date. This applies whether it is a corporate loan guaranteed by billionaires or mortgage to a son or daughter guaranteed by their parents.
Ten had access to the CBA facility until December and was prepar…
Read the full article at: http://www.afr.com/brand/chanticleer/ten-network-directors-had-good-reason-to-roll-over-to-threats-20170615-gwrvja
