The owner of WVPX/TV23 in Akron, ION Media Networks, Inc., has filed for bankruptcy protection according to published reports. Although TV23's transmitter is located in Akron, all of its local operations are based at the WKYC Digital Broadcast Center here in Cleveland, where it rents space.
The parent company, formerly known as PAX, owns and operates the largest U.S. broadcast television station group and ION Television, the country's only independent broadcast television network. The Company owns 59 of its 60 full-power broadcast television stations, including stations in each of the top 20 U.S. markets and 39 of the top 50.
Here's the press release from their website:
ION Media Networks, Inc. ("ION"), owner and operator of the ION Television network, announced today [May 20] that the United States Bankruptcy Court for the Southern District of New York has granted all of the company's first day requests.
Court approval includes continued use of cash on hand, as well as access to an additional $25 million of initial funding from a majority of the company's first lien secured lenders. This funding is part of a proposed financial restructuring that contemplates a significant de-leveraging and additional capital for growth.
"We are pleased with the process thus far and appreciate the support from our senior lenders to reduce our legacy indebtedness and provide cash funding for growth," said Brandon Burgess, ION's Chairman and CEO. "We look forward to working with all of our senior lenders to quickly implement a restructuring that finally provides a clean balance sheet, allowing the company to execute its growth strategy."
The company also confirmed that it is in active discussions for the acquisition of further content for the 2009/10 television season, including both off-network syndicated content as well as opportunistic original productions, which it anticipates announcing in coming weeks.
ION's business model is focused on capturing growth through improved programming and distribution. Ratings for ION Television showed double digit increases in the first quarter, driven by new programming additions, including NCIS, Boston Legal, and popular motion pictures. Additional syndicated shows, such as Criminal Minds and Ghost Whisperer, will join the network line-up in the second half of the year, along with several original show premieres, including the crime drama Durham County, starring Hugh Dillon. The company also continues to enhance its strong nationwide distribution, as seen in recent expanded carriage deals with DirecTV and Dish Network.
ION will continue its operations in the ordinary course through the financial restructuring process and provide uninterrupted service to its viewers and clients. In light of the pre-negotiated restructuring supported by holders representing a majority of its outstanding first lien debt outstanding, ION expects to complete the process on an accelerated basis. Moelis & Company LLC is serving as financial advisor to ION and Kirkland & Ellis LLP is serving as legal counsel for the restructuring.
