Ann: Appendix 3Y for G Rinehart , page-12

With the huge debts channel 7 and channel 9 have ch 10 will come out the winner both have over 2 billion in debt from what i have read this year. channel 9 is having a hard time finding cash . ch 10 is restructuring now .

The big spike in Seven West Media share price as the market digested its inaugural result today was something of a relief rally ? relief that the group performed a little better than expected and relief that it is close to refinancing its $2.5 billion of debt.
While the group, formed through what was effectively a reverse takeover of West Australian Newspapers by the Kerry Stokes and Kohlberg Kravis Roberts and Co-owned Seven Media Group, has been only newly formed, investors may also have been relieved that the initial performance has validated WAN?s stated rationale for supporting the merger.

Seven West?s reported after-tax earnings of $115.1 million were roughly in line with expectation and its earnings before interest, tax, depreciation and amortisation of $617.5 million surprised a little on the upside, coming at the upper end of the revised guidance of between $610 million to $620 million it issued in May.
The result only included two and a half months of contribution from the Seven Media businesses, which had a very good 12 months. Television revenues were up 8.4 per cent and with costs rising only three per cent EBITDA rocketed 23 per cent as the group leveraged Seven?s market dominance.

The magazine group managed anaemic but, thanks to reducing costs, positive EBITDA growth of 0.9 per cent in a very difficult market and Yahoo!7 generated revenue growth of 22.5 per cent and EBITDA growth of 14.4 per cent, to $38 million.

Those who were cynical about the merger, and there were many, questioned it for two reasons. One was the involvement of Kerry Stokes on both sides of the transaction, given that he controlled more than 24 per cent of WAN and 45 per cent of Seven Media.

While Nine Entertainment?s debt load has kept the speculators busy it looks like the $2 billion debt load of Kerry Stokes? Seven West Media has also got people talking. Citigroup has already warned that Seven West is at risk of breaching its debt covenants and The Australian reports that the company is finding it harder to keep a lid on concerns over the debt, given that the listed media sector as a whole has to refinance about $3 billion in debt over 2012, and that's without counting Nine. However, the paper adds that Seven West is unlikely to run into too much trouble, with Seven Media? CFO Peter Lewis in productive talks with a number of banks. The paper adds that that Seven's debt covenants are not industry standard, with its required debt-to-earnings ratio more like six or seven times, not the four times ratio of its peers, and its interest cover requirement is about 1.5 times.

Channel 9 Source: The Daily Telegraph
A QUARTERLY update to lenders of Nine Entertainment's $3.6 billion debt pile has sparked more rumblings about the future of the media business owned by CVC Asia Pacific.

CVC's local boss, Adrian MacKenzie, has been talking to senior lenders about extending the deadline for Nine Entertainment's $2.8 billion senior debt, although he played this prospect down when one of the lenders raised the issue during Thursday's meeting.

The reality is MacKenzie can't get too optimistic as he will find it tough to get Nine's 80-odd lenders to agree to a deal. This task gets harder as more hedge funds come onto the register.