MediaWorks repays ‘Joyce loan’ for radio spectrum licences

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

(BusinessDesk) MediaWorks' subsidiary RadioWorks has repaid the $32.28 million outstanding on a "loan" signed off by former Communications Minister Steven Joyce that allowed the media group to defer payments to the Crown for radio spectrum licences.

The balance of $32.28 million of principal plus interest was paid yesterday, almost two years ahead of schedule, current minister Amy Adams says.

MediaWorks had originally owed $43.3 million plus GST and had previously made two payments of $11.9 million. The Crown charged the private equity-owned company interest of 11.2%.

Ms Adams says eight broadcasters had chosen to take up a Crown offer of a deferred payment scheme in 2010 for their 20-year spectrum licences.

"The deferred payment scheme was intended to help take the financial pressure off a number of broadcasters during what was a difficult economic period. The scheme has clearly worked well and achieved its objectives."

RadioWorks holds 218 individual licences and was due to complete its payments by October 2014. Early payment was an option offered as part of the arrangements and RadioWorks has exercised that option, in line with the contract provisions.

MediaWorks is owned by Ironbridge Capital. The broadcaster, whose stable includes TV3 and Four, and radio stations including the Rock, MoreFM, said in August it had written down the value of goodwill by $241.6 million in a capital restructure that included US private equity investor Oaktree Capital Management holding a chunk of its debt.

The group's holding company, GR Media Holdings, posted a loss of $305.6 million in the year ended August 31, 2011, compared to a loss of $50.5 million a year earlier.


This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7594 -0.0012 -0.16%
AUD 0.9726 0.0019 0.20%
EUR 0.7013 0.0019 0.27%
GBP 0.5026 0.0016 0.32%
HKD 5.8849 -0.0095 -0.16%
JPY 90.6670 0.2070 0.23%

Commods

Commodity Price Change Time
Gold Index 1179.0 -14.680 2015-04-24T00:
Oil Brent 65.3 1.460 2015-04-24T00:
Oil Nymex 57.1 -0.480 2015-04-24T00:
Silver Index 15.6 -0.190 2015-04-24T00:

Indices

Symbol Open High Last %
NZX 50 5757.9 5776.4 5757.9 0.13%
NASDAQ 5096.3 5100.4 5056.1 0.71%
DAX 11881.2 11996.5 11810.9 1.49%
DJI 18056.4 18108.9 18058.7 0.12%
FTSE 7070.7 7106.9 7070.7 0.35%
HKSE 28245.1 28588.5 28061.0 1.33%
NI225 20063.8 20069.2 20020.0 -0.18%