Pay-TV provider Austar United is trawling the debt market for a suitable saviour to bail out its cash-strapped business.
"We're looking to raise whatever funds we need to execute our business plan," a spokesperson for Austar told ZDNet. However he wouldn't confirm that Austar is seeking a AU$200 million lifeline.
"If funding proves to be too expensive in the debt market we will look at other options," the spokesperson said. "We want to make sure we do it on the right terms."
Austar confirmed its cash burn rate of AU$81 million in the September quarter.
"We're very closely monitoring costs and spending," he said. "We'll be as efficient as can be going forward.
With AU$422 million in the bank as of September 30, the regional Pay-TV provider claims to have enough cash on hand to last up to a year.
"It's a question of how we manage it," the spokesperson said. "We have the capability of slowing down if we need to."
However, Austar said it would like to be in the position to do something "sooner rather than later" to break even.
"We're scoping our options at the minute," the spokesperson said. "We'll be working on it early in the New Year."
