ION Files for Bankruptcy, Restructures Debt

NEW YORK: ION Media Networks has filed for bankruptcy as part of financial restructuring that aims to convert all of its debt into equity.

The financial restructuring aims to extinguish over $2.7 billion in legacy indebtedness and preferred stock and capitalize the company with a $150 million new funding commitment underwritten by a group of first lien holders. Participation in the new funding commitment, which is part of a $300 million facility that converts into equity upon completion of the restructuring, will be made available to all holders of ION’s first lien senior secured debt. To implement this restructuring, ION has filed voluntary Chapter 11 petitions in United States Bankruptcy Court for the Southern District of New York.

"We are pleased with the support from our first lien senior debt holders to resolve the company’s legacy debt issues and fund our television growth plans," said Brandon Burgess, ION’s chairman and CEO. "We look forward to working with all senior debt holders and other stakeholders to facilitate a complete and expeditious restructuring. We are positioning the business for growth and will emerge from the restructuring in a strong position to serve viewers, clients, and stakeholders."

ION will continue its operations throughout the financial restructuring process.