Oaktree ups stake in New Zealand's MediaWorks

Oaktree was among a group of creditors, including TPG Capital, that assumed control of MediaWorks back in August after the company - then owned by Ironbridge Capital- went into receivership.

According to a filing, Oaktree - via Tokyo Opportunties BV - is the largest shareholder in MediaWorks Investments, the holding company set up by the consortium of creditors to acquire the business. TPG is the third-largest stake holder with 15.7%, while Royal Bank of Scotland, Australia's Westpac Banking Corp. and J.P. Morgan hold 21.9%, 14.6% and 6.5%, respectively.

Ironbridge bought MediaWorks from CanWest Global Communications and Brook Asset Management for approximately NZ$740 million in 2007, but like the media industry in Australia and New Zealand as a whole, the group struggled as advertising revenues plunged in the wake of the global financial crisis.

TPG acquired NZ$70 million worth of debt in MediaWorks from lender Commonwealth Bank of Australia (CBA) back in 2011. Oaktree meanwhile emerged as a creditor last year after acquiring NZ$125 million of the media group's debt at a reported 50% discount.

MediaWorks' subsidiaries include RadioWorks and TVWorks. The company operates two free-to-air television channels, a string of national and regional radio stations and an interactive media division responsible for 18 websites and a mobile network.

Oaktree is also in the process of floating Australian broadcaster Nine Entertainment, which was saved from receivership when Oaktree and Apollo Global Management took control of the company in debt-for-equity swap worth nearly $3 billion. The agreement wiped out $1.4 million of equity held by former backers CVC Capital Partners in the largest-ever loss on a single private-equity deal in Asia.

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• Topics
• Australasia
• Media
• Restructuring
• Australia
• Oaktree Capital
• Media
• Ironbridge Capital
• Distress