Sources said Bruce Gordon is likely to appeal Monday's Supreme Court decision. Credit:Sylvia Liber However, it is not clear if the revised offer will be put to creditors at the second meeting, which is due to be held in Sydney on Tuesday. Ten administrator KordaMentha is understood to be seeking advice on whether a new bid is able to be accepted. The deadline for offers was August 24. KordaMentha has already released a second report to creditors recommending an offer from US broadcaster CBS, which is owed $348 million and is the largest creditor. CBS' offer is more generous to creditors, offering between 10 cents and 34 cents in the dollar, except to 21st Century Fox, which would receive just 1.7 cents in the dollar. To be successful, either offer must receive a majority of votes from creditors and a majority of the value of debts voted in favour.

Mark Korda from KordaMentha speaks to the Media following Ten's first creditors' meeting. Credit:James Alcock However, Ten's 750 employees hold the majority of creditor votes and they appear unlikely to vote in favour of Mr Murdoch and Mr Gordon taking over the company. "There is zero enthusiasm within Ten staff for a Lachlan Murdoch takeover," a staff member told Fairfax Media. The revised offer does not propose any redundancies at Ten, however sources close to Mr Gordon have previously criticised Ten's management. Birketu has already successfully applied to the NSW Supreme Court for a temporary delay in the creditors' meeting and forced KordaMentha to reveal details of its first offer.

Delaying the meeting from its original date of September 12 to September 19, during which time the media laws provisionally passed, allowed Birketu and Illyria to submit a less complicated offer. Birketu also wants court orders reducing CBS's debt value from $348 million to $1 or $0. If CBS retains the value of debts it can easily vote in favour of its own offer at the creditors meeting. Justice Ashley Black is expected to make a decision on Monday. Meanwhile, the revised Murdoch-Gordon offer would see Birketu appoint one director and Ilyria two, including a new chairperson. CBS will receive $20 million under the revised offer, or 5.75¢ in the dollar, compared to $7.4 million in the original Birketu-Illyria offer. The $55 million in funding for the creditors' pool would come through a new debt facility, expected to be issued to Ten by the Commonwealth Bank of Australia (CBA) and guaranteed by Mr Murdoch and Mr Gordon.

It is not known how big this debt facility would be, but Ten went into administration because Mr Gordon and Mr Murdoch did not want to guarantee a new $250 million facility. "Birketu and Illyria are highly confident that formal credit approval of the new debt facilities will be obtained prior to the second creditors' meeting on terms substantially the same as the original proposal, with an increase in limit to reflect the repayment of the guarantor fees ... and the increased payment to unsecured creditors," the pair told KordaMentha. CBS has already signed contracts of sale, supplied Ten with an additional $30 million in "working capital", and repaid $143 million of Ten's debts, including about $110 million to secured creditor CBA and about $33 million in guarantor fees to Mr Murdoch, Mr Gordon and former director James Packer. Loading But its offer needs approval from the Foreign Investment Review Board (FIRB) and court approval for the transfer of shares to CBS.

Shareholders will be wiped out under CBS's offer, but would retain 25 per cent of equity under the Birketu-Illyria offer. However, the value of their shares would be diluted, with an extra 1.07 billion to be issued to give Birketu and Illyria a combined 75 per cent holding.