According to sources, talks led by Setanta co-chief executives and founders Leonard Ryan and Michael O'Rourke to secure funding to buy out some of its backers are "progressing". As well as Ryan and O'Rourke, Setanta's shareholders include private equity outfits Balderton Capital and Doughty Hanson.
It is understood that Setanta's backers are not prepared to supply all of the capital required to keep Setanta afloat. However, it is thought they are prepared to stump up some of the cash needed. Despite this, Ryan and O'Rourke are thought to be closing on the total funding required to save the business.
Furthermore, sources insist today that the company is not about to call in the administrators despite facing the prospect of defaulting on millions of pounds worth of repayments to certain rights holders.
The business, which is attempting to renegotiate key rights deals as it looks to slash costs to stay afloat, is understood to be considering calling in the administrator as it grapples with a funding shortfall thought to be about £100m. Setanta has about 1.2 million UK direct subscribers, but needs 1.9 million to break even.
Setanta is understood to have missed a £3m payment to the Scottish Premier League last week. It is also understood to have to pay the English Premier League about £30m later this week as part of its TV rights deal.
Yesterday (9 June), it emerged Setanta had disabled its telephony and online subscription services, preventing new customers from signing up.
Attempts to subscribe online to Setanta's cable, satellite, online or Freeview services are met with an error message "Oops! Something has gone wrong...".
Meanwhile, calls to the Setanta subscription telephone line are being met with a message noting that the service is unavailable.
Setanta declined to comment.
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