The arrival of a new investor has given the future of MediaWorks a considerable boost.
The US-based Oaktree Capital Management, which specialises in investing in distressed assets, has bought $125m of MediaWorks’ debt from BOS International and BNZ at a considerable discount.
“Now, with Oaktree having taken out some debt, it paves the way for that restructuring of MediaWorks debt to take place, so it is a positive development because it takes out two banks, who may have had different views on it, and gives the restructuring plan a greater chance of happening,” a source said. “So now, all the parties are there because they want to be in there.”
The Australian Financial Review says the purchase now makes Oaktree the biggest member of MediaWorks’ $388m syndicated facility.
Oaktree are also said to be lining up a purchase of Nine Entertainment in Australia.