Rupert Murdoch's News Corp says it has sealed a debt rescue package for its financially challenged pay television business Foxtel as the media giant posted a $306 million loss in the first quarter.

At News Corp's first-quarter results on Friday, the company said its loans to Foxtel had increased to $700 million but it expected to reach an agreement with external lenders in coming weeks to restructure the payment schedule for Foxtel debts, which rose to $2.3 billion last financial year.

“We expect to complete the refinancing of a significant portion of Foxtel debt in the coming weeks which will include a package of bank refinancing, third-party financing and additional shareholder funding," News Corp's chief financial officer Susan Panuccio said on a conference call.

In May, News Corp was forced to inject cash into Foxtel after it failed to find external lenders to refinance its debt. Credit:Rob Homer

"As part of the refinancing News Corp has contributed an additional $200 million loan and the new financing will extend maturities for at least three years and importantly provide Foxtel with ample liquidity and flexibility to execute on its strategy,” she said.