http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN1946005720090519

NEW YORK, May 19 (Reuters) - ION Media Networks Inc (IION.PK), the  
owner and operator of the ION Television broadcast network, said on  
Tuesday it had reached an accord with a majority of its senior debt  
holders to convert debt to equity in a pre-negotiated financial  
restructuring, hours after it filed for Chapter 11 bankruptcy  
protection.

ION Media, which said on its web site it owns stations in each of the  
20 largest television markets in the United States, listed assets of  
less than $50,000, but liabilities of more than $1 billion and more  
than 100,000 creditors in a filing with the U.S. Bankruptcy Court in  
Manhattan.

The financial restructuring, reached with holders of about 60 percent  
of its first lien senior secured debt, would extinguish $2.7 billion  
in debt and preferred stock, and pump $150 million in new funding into  
the company, the company said in a statement.

ION Media said it expects its voluntary bankruptcy filing to  
accelerate the restructuring.

"We look forward to working with all senior debt holders and other  
stakeholders to facilitate a complete and expeditious restructuring,"  
ION's Chairman and Chief Executive Brandon Burgess said in a statement.

ION Media hired Kirkland & Ellis to serve as legal counsel for the  
restructuring.

The case is in Re: ION Media Holdings Inc, U.S. Bankruptcy Court, No.  
09-13168. (Reporting by Phil Wahba, editing by Leslie Gevirtz)
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