MediaWorks’ subsidiary RadioWorks has paid in full its deferred payments to the Crown for radio spectrum licences, nearly two years ahead of schedule, Communications and Information Technology Minister Amy Adams says. The outstanding principal plus interest……. totalled $32.28 million and payment was completed last night. The original principal sum owed by RadioWorks was $43.3 million plus GST. Two payments of $11.9 million, including GST, principal and interest, had previously been made. An interest rate of 11.2 per cent was set to cover the costs and risks to the Crown.
Eight broadcasters, including RadioWorks, chose to take up the Crown’s offer of a deferred payment scheme in 2010 for their 20-year spectrum licences. Ms Adams welcomed the payment by RadioWorks. “The deferred payment scheme was intended to help take the financial pressure off a number of broadcasters during what was a difficult economic period. The scheme has clearly worked well and achieved its objectives.” RadioWorks holds 218 individual licences and was due to complete its payments by October 2014. Early payment was an option offered as part of the arrangements and RadioWorks has exercised that option, in line with the contract provisions.