By Gillian Tan SYDNEY--Goldman Sachs and its controlled mezzanine debt funds have written to Nine Entertainment Co. and CVC Asia Pacific to reiterate the desire for a consensual restructuring of the group's 3.8 billion Australian dollar (US$3.9 billion) debt, a person familiar with the matter said. Goldman and its funds owns almost A$1 billion in mezzanine debt, while the remaining A$2.8 billion of senior debt maturing in February 2013 is owned by hedge funds including Oaktree Capital Group LLC OAK -2.15% and Apollo Global Management. The letter from Goldman's lawyers Freehills to Nine's lawyers Gilbert + Tobin was in response to a letter from Nine's chairman Peter Bush received Tuesday. Mr. Bush had stated the media group would consider appointing Macquarie Capital to run an auction for the entire company unless lenders facilitated a restructure within the next week, the person said. Macquarie advised on the sale of Nine's publishing unit ACP Magazines to Bauer Media Group for A$525 million. Nine owns one of Australia's three commercial free-to-air television networks, entertainment assets including ticket agency Ticketek and a 50% stake in online news portal Ninemsn. Goldman, through Freehills, said Nine's directors should act in the best interests of the company and its shareholders. The mezzanine debt holders offered to meet senior lenders for further talks on the understanding that the meeting will be on equal terms, the person said. Goldman has proposed the conversion of its mezzanine debt into a 30% equity stake in the new entity, which will see CVC Asia Pacific's A$1.9 billion of equity cease to exist. However, the senior lenders are offering warrants worth up to 10% of any profit reaped from the future sale of Nine Entertainment Co. -Write to Gillian Tan at gillian.tan@wsj.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires

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