CHANNEL 10’s future hangs in the balance as the embattled broadcaster struggles to repay its debts.

Ten Network Holdings’ shares have placed into a trading halt this morning, amid speculation the network may announce a voluntary administration after three key backers decided not to support a new funding deal to refinance a $200 million loan.

The Australian reported today Ten shareholders Lachlan Murdoch, Bruce Gordon and James Packer have decided against guaranteeing a new $250 million loan to replace the existing $200 million overdraft, which needs to be repaid to Commonwealth Bank in ­December.

The network’s board is weighing its options while the trading halt remains in force, a process that could take several days.

“Over the weekend, Ten received correspondence from financial advisers Illyria Pty Limited and Birketu Pty Limited, two of the shareholders which guarantee the company’s current financial position,” company secretary Stuart Thomas said in an update to the ASX this morning.

“That correspondence confirms that those guarantors do not intend to extend or increase their support for the company’s credit facilities beyond the term of the current facility which expires on 23 December 2017.”

Illyria, Lachlan Murdoch’s private investment vehicle, holds 7.5 per cent of Ten shares, while Bruce Gordon’s Birketu controls 15 per cent. James Packer, is understood to be keen to sell his 7.7 per cent stake, Fairfax Media reports.

Mr Thomas requested that the shares remain in a trading halt for at least 48 hours while the company considered its position and “the range of restructuring and refinancing initiatives underway”.

TOUGH TIMES FOR TELEVISION

Ten, which boasts hit shows The Bachelor and MasterChef and Big Bash cricket, had hoped to secure new funding faded over weekend.

At its recent half-year ­results, the company admitted it may not be able to carry on as a going concern after posting a $232.2 million loss.

As Australia’s third-placed free-to-air network, Ten has struggled to raise enough advertising revenue to cover its costs.

The rise of streaming services like Netflix, Stan, Amazon Prime and Foxtel now has put the television industry under pressure, while online media also competes for advertiser dollars.

dana.mccauley@news.com.au