Network Ten administrator Mark Korda. Credit:James Alcock Media ownership laws prevent Mr Gordon or Mr Murdoch from controlling Ten, unless they divest other media companies they control. At the meeting Network Ten received 240 creditor claims and 190 claims from employees. They were told the company is expected to have a cash-flow loss of up to $50 million by the end of the year. Media and shareholders were not allowed to attend, but Mr Korda briefed journalists afterwards and later met with the Australian Shareholders Association. At the first creditors meeting, a 14-person committee was appointed representing people owed money by Network Ten – including the three billionaire shareholder guarantors, studios, Commonwealth Bank, trade creditors, Cricket Australia, and employees – and will work on a 60-day recapitalisation strategy.

Administrators from KordaMentha address creditors at the first meeting in Sydney. Credit:James Alcock Administrator Mark Korda has also confirmed he will apply for an extension because holding the second creditors meeting by the July 19 deadline was "probably a bit too quick" to find and secure new funding. Unfortunately for shareholders, he said the "preliminary view is that there is no value" for them in the company any more. Network Ten shareholders and loan guarantors Lachlan Murdoch (left) and James Packer. Credit:Rob Homer The administration has had "no discernable impact at all" on revenue, with advertisers indicating they want three competitive networks, Mr Korda added.

Fourteen people have been selected for the creditors committee. Three representatives for Ten employees, one representative each Mr Murdoch, Mr Gordon and Mr Packer, and one each for: US studio CBS; local studios EndemolShine and FremantleMedia; Commonwealth Bank; Cricket Australia; and trade creditors including Metro Weather and Starcom. Ten is likely to still owe Cricket Australia for the rights to the upcoming Big Bash League season, for which it pays about $20 million a year. The rights for 2018 onwards are soon up for negotiations. Ten used up $97 million of a $200 million facility with CBA when it was put into administration on June 14 and had been "cash-flow break even" since then. The three guarantors have agreed to provide more funding to keep the network functioning as usual, Mr Korda said. However, it was their decision not to guarantee the $200 million loan any more than forced Ten's directors to appoint administrators. A spokesman for the Australian Securities and Investments Commission confirmed it had sent an observer to Monday's meeting.

Meanwhile, Australian Restructuring Insolvency and Turnaround Association (ARITA) chief executive John Winter said he couldn't confirm if it was investigating KordaMentha's appointment, or if it has received any complaints it is not an independent administrator because it has been working with Ten since February and already received nearly $1 million in fees. However, he noted that KordaMentha had filed an updated Declaration of Independence, Relevant Relationships and Indemnities (DIRRI) with the corporate regulator. "We are pleased to see that, with the expanded disclosure, the reissued DIRRI now complies with the requirements of ARITA's Code of Professional Practice," he told Fairfax Media. A letter sent to ASIC on June 22 from KordaMentha states it was concerned that rushing out a list of its meetings with Ten's directors and management could breach privacy and disclosure obligations. The updated DIRRI describes in detail "Project X", which included 51 meetings with Ten – starting with a meeting on February 28 with two independent directors: chairman David Gordon and Debbie Goodin.

Altogether KordaMentha held 11 meetings with the board. It held two meetings about "contingency planning" before Siobhan McKenna, the director representing Lachlan Murdoch's investment vehicle Illyria Nominees, resigned on March 15. Loading The next meeting with directors was held on March 21 to provide an "update on Contingency Plan progress, discussion on management plan in relation to US studio negotiations". The last meeting with directors was held on June 7 to talk about the shareholder guanrantors and the deals with US studios. And then a flurry of meetings were held on June 13 (the day before administration) to discuss cash flow, funding, and letters from the guarantors advising they would no longer back Ten's loans.