Setanta Founders Attempt To Secure Last-gasp Mbo

According to media reports, the founders of Setanta are believed to be attempting to secure last-ditch financing to instigate a management buy-out of the broadcaster which is on the brink of administration.

Setanta has been on the brink of administration for the past two days and appeared yesterday to have disabled new customers’ ability to sign up for the service.

Now founders Leonard Ryan and Michael O’Rourke, who are co-chief executives, are planning to make a bid for the company and are in talks with backers to secure financing.

Setanta is believed to have tried to secure investment from companies including BT and ESPN in addition to trying to raise more money from existing shareholders, private equity firms Doughty Hanson and Balderton Capital.

Setanta’s parlous financial position has led it to miss making a £3m payment to the Scottish Premier League, due as part of its £125m deal running until 2014.

It must also find around £30m to meet an instalment due to the English Premier League before the end of the week.

The company is estimated by analysts to need 1.9m subscribers to break even, but currently has 1.2m.