Posted September 13, 2017 14:40:42

Photo: Ten's administrators want to put the CBS takeover offer to a creditors' vote next week. (AAP/CBS)

There is no urgency for Ten Network creditors to sign off on a recommendation to sell the embattled broadcaster to US television giant CBS, a court heard today.

Dr Andrew Bell SC, representing media baron Bruce Gordon, said a deed of company arrangement (DOCA) with CBS does not expire until December 15 this year, allowing creditors sufficient time to consider an alternative bid from Mr Gordon and Lachlan Murdoch.

Mr Gordon and Mr Murdoch through their respective companies, Birketu and Illyria, have challenged the decision by administrators KordaMentha to sell Ten to CBS, claiming that Ten creditors have not been told the full story about their unsuccessful bid.

A second meeting has been called for 19 September where Ten creditors will be asked by KordaMentha to vote for the CBS deal.

However, Mr Bell is seeking to derail the scheduled creditor meeting so the joint proposal from Bruce Gordon and Lachlan Murdoch can be considered.

"No evidence has been put in relation to any particular urgency regarding the DOCA with CBS," Dr Bell said referring to the December 15 sunset clause when the CBS proposal expires.

"Creditors are being asked to do something very significant in terms of their economic self-interest and should be properly informed."

Arguing that KordaMentha had acted improperly by only proposing the CBS deal, Dr Bell also suggested that the KordaMentha recommendation be scrutinised by an independent expert.

Justice Ashley Black dismissed an application from Dr Bell that both the CBS and Gordon/Murdoch proposals be put to the September 19 creditors meeting.

While agreeing that Dr Bell's questions were "very real and not theoretical", Justice Black cited the reluctance of all parties to agree to the terms of the proposal as his reason for refusing the application.

"It seems to be absolutely clear that the (proposed) amendment is factually based on whether there would have been any futility in putting forward a proposal that was substantially similar," Justice Black said earlier.

While Ten's latest problems are contemporary, the network has faced many hurdles during its lifespan of little over 50 years.

Richard McHugh SC for KordaMentha opposed Dr Bell's bid, saying it was unfair to permit any amendment without the administrators being able to properly respond.

Mr McHugh said his clients would require an adjournment to consider their response, which Justice Black refused.

The hearing in the NSW Supreme Court has been set down for two days and is scheduled to end late today.

However, in warning Dr Bell to expedite his arguments Justice Black warned he was prepared to continue the case into the early evening.

The court action by media rich-listers Bruce Gordon and Lachlan Murdoch is attempting to overturn the decision to sell Ten out of receivership to US media giant CBS.

The hearing also marked the first time that Mr Murdoch — through his family-controlled 21st Century Fox business, rather than his private Illyria company — intervened and joined the proceedings.

Follow Peter Ryan on Twitter @peter_f_ryan.

Topics: media, company-news, takeovers, australia