RadioWorks fulfils obligation early
RadioWorks has paid off its $32 million deferred payment to the Crown for radio spectrum licences - two years ahead of schedule.
A subsidiary of TV and radio broadcaster MediaWorks, it chose to take up a Crown offer of a deferred payment scheme in 2010 for its 10-year spectrum licences. Seven other broadcasters chose to do the same at the time.
The deferred payment scheme to debt-laden MediaWorks, which is owned by private equity firm Ironbridge, attracted controversy as the Treasury and Ministry of Economic Development advised ministers against it when the deal was set up in 2009.
The original principal sum owed by RadioWorks was $43.3m plus GST. Two payments of $11.9m, including GST, principal and interest, had previously been made.
Today, Communications and Information Technology Minister Amy Adams confirmed in a statement that the outstanding principal and interest of $32.28m was paid last night .
An interest rate of 11.2 per cent was set to cover the costs and risks to the Crown, the statement said.
"The deferred payment scheme was intended to help take the financial pressure off a number of broadcasters during what was a difficult economic period," said Adams.
RadioWorks holds 218 individual licences and was due to complete its payments by October 2014.
- © Fairfax NZ News