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Court Approves DIP Financing for ION Media

WEST PALM BEACH, FLA.: ION Media said it received final approval for its $150 million debtor-in-possession financing plan. The United States Bankruptcy Court for the Southern District of New York gave its blessing last week just as some creditors objected to the terms of the DIP. ION filed for Chapter 11 bankruptcy in late May after reaching an agreement with creditors representing 60 percent of its first-lien senior secured debt. More creditors appear to get on board during the court review, according to the company.

“In total, holders of approximately 88 percent of outstanding first-lien indebtedness affirmatively support or do not object to the approved financing,” an ION statement read.

The financing is structured to become equity once the company emerges from bankruptcy, if it so elects.
-- Deborah D. McAdams

More TVB coverage of ION:
July 2, 2009: “ION Media’s Creditors Object to DIP Terms”
ION Media’s creditors are objecting to the terms of the company’s $150 million debtor-in-possession loan. ION in turn told the U.S. District Court for the Southern District of New York on Wednesday that the loan facility was “fair and reasonable.”

May 21, 2009: “ION Files for Bankruptcy”
ION Media Networks has filed for Chapter 11 in U.S. Bankruptcy Court for the Southern District of New York, listing assets of around $10 million and liabilities of more than $1 billion. A total of 117 subsidiaries also filed.

June 29, 2009: “ION Mobilizes TV in Manhattan and D.C.”
The service marks the for-real commercial debut of mobile digital TV broadcasting in the United States, though for whom is unclear. Various prototype receivers were bandied at April’s NAB trade show, but none appear to be readily available.