Setanta's senior executives are locked in a board meeting today to hammer out the final details of a £50m rescue plan that will see the co-founders, Michael O'Rourke and Leonard Ryan, and an unnamed international backer take a majority stake in the ailing Irish pay-TV operation.
It is understood that the co-founders are hopeful that the financial rescue plan can be approved by the company's board so that an official announcement can be made before the close of business today.
The proposed deal needs to be pushed through ahead of a £30m payment to the English Premier League, due on Monday. Setanta has already missed a £3m payment to the Scottish Premier League.
It is thought that the plan would keep Setanta's current business intact, with the co-founders and new backer taking a majority stake, according to today's Irish Times. The paper reported that the new investor will provide around £50m in funding.
One of several options understood to have been considered this week as O'Rourke and Ryan have sought to avoid calling in the administrators is to sell off Setanta's profitable US and Irish businesses. Denis Desmond, the Irish music promoter, owns 20% of Setanta Ireland.
If the deal is accepted today then Setanta's other shareholders, which include Doughty Hanson and Balderton Capital, would have their holdings in the pay-TV operator reduced.
US-firm ESPN, which had been widely expected to swoop on some of Setanta's TV rights if the company went into administration, yesterday denied it had any plans to buy, or take a stake, in the business.
Earlier this week BT stopped offering Setanta Sports channels to new subscribers until the future of the company had been clarified.
Setanta put a statement on its website on Wednesday that stated: "In the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions.
"As has been widely reported in various media channels, the management of Setanta Sports is in the process of attempting to secure the future of the business. The company has not gone into administration. All our channels are still broadcasting across all platforms and our subscribers can continue to enjoy our programming."
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