MediaWorks plans revealed soon

TV3's owner is close to revealing details of recapitalisation plans for the heavily indebted media group.

Kerry McIntosh, Ironbridge Capital's New Zealand operational partner, told BusinessDay yesterday the Australian private equity firm had almost finalised its capital structure review of MediaWorks, which it bought for $790 million in 2007.

Against this backdrop, and in a surprise announcement on Monday, MediaWorks said its chief executive for almost a decade, Brent Impey, would leave at the end of the year. Aside from TV3, MediaWorks also owns C4 and nine national radio stations including Radio Live, The Edge and More FM.

McIntosh said it was Impey's own decision to step down.

"He'll be a loss for the business but we've managed to retain him in a consultancy role through until 2011, and certainly intend to make use of his industry knowledge, skills and expertise over that period," McIntosh said.

As for replacing Impey with separate chief executives for MediaWorks' radio and television operations, McIntosh refuted speculation this meant Ironbridge specifically wanted to eventually sell the two units separately.

"It's simply a management reorganisation. It doesn't reflect the way we think about running the two businesses together or exiting the business," he said.

Meanwhile, work on recapitalising MediaWorks was progressing with an announcement likely to be "soon". Options included injecting fresh equity and bringing in a new shareholder but not selling out, McIntosh said.

MediaWorks' accounts for the year to August have not yet been published. However, for the year to August 31, 2008, the group had total borrowings of $530.4m and annual finance costs of $92.8m, helping push it to a $40.3m loss.

Last month, Impey said advertising revenue in the television and radio industry was down about 12 per cent this year but MediaWorks had performed slightly better than that.

Meanwhile, MediaWorks chairman Brent Harman said discussions were held with Impey for about six weeks about his plans to leave. But Harman, a former TVNZ and Prime TV Australia chief executive, said no efforts were made to talk Impey out of leaving. "I think he would characterise it as being a mutually agreeable parting of ways," Harman said.

Impey is declining to be interviewed on his departure from MediaWorks.