UPDATE: eisa sold

eisa's 80,000 subscribers and remaining physical assets will pass into the hands of Austar after key creditors voted yesterday to accept the pay TV and Internet service provider's $13 million takeover bid.

As eisa's only secured creditor on a $7.5 million loan, Austar had already taken possession of the Canberra, Darwin and Cairns operations.

Creditors, who include Telstra, Primus Telecom, KPMG, Optus and Dutch satellite operator New Skies, are expected to receive a 40 to 60 per cent return from the sale; however, Andrew Love from administrator Ferrier Hodgson said nothing will be left over for shareholders.

Love, who was confident prior to the meeting that the Austar transaction would go ahead, expects the sale to be finalised by early October. "The Austar deal is the best offer around," he said. "The alternative is receivership."