05.22.2009 01:25 PM
Court Cuts Loose $25 Million for ION’s Operations
WEST PALM BEACH, FLA.: The U.S. Bankruptcy Court for the Southern District of New York approved ION Media’s first-day requests, including access to $25 million brokered in its Chapter 11 reorganization plan. ION said the court approved its continued use of cash on hand in addition to the portion of reorg funds.
The company also confirmed that it’s in active discussions to acquire further content for the 2009-10 television season, including off-network syndicated fare as well as original content. ION anticipates making programming announcements in the coming weeks.
The company filed for bankruptcy this week after reaching a restructuring agreement with investors who held 60 percent of the company’s first-lien senior secured debt. The group signed for a new $150 million funding commitment, of which the $25 million was a part, to recapitalize ION. The company’s $2.7 billion debt also was eliminated in the arrangement. -- Deborah D. McAdams