SACRAMENTO–A federal judge has issued an order extending for one week a temporary restraining order (TRO) preventing Nexstar and Tegna from integrating their operations as he continues to consider whether or not to grant a preliminary injunction in an antitrust case seeking to block the $6.2 billion merger.
As previously reported, a temporary restraining order (TRO) halting the merger between Nexstar and Tegna was issued in late March by U.S. District Judge Troy L. Nunley in California in the U.S. District Court Eastern District Of California.
The ruling blocks the two companies from proceeding with integration of their operations until the court rules on whether or not to issue a preliminary injunction in an antitrust case filed by DirecTV and Attorneys General in eight states.
The lawsuit seeks to block the deal that was approved by the Federal Communications Commission and the Department of Justice. The court heard arguments on the issue from both sides during a hearing on April 7 that was attended by Nexstar chairman and CEO Perry Sook.
While the April 10 order continues to limit Nexstar’s ability to integrate its operations with Tegna, the judge softened a number of important provisions in the original TRO.
In its response to the TRO, Nexstar opposed the TRO suggested a number of changes needed to be made if the judge planned to keep it in place.
The new order allows Nexstar to undertake ordinary course cash management, ordinary-course intercompany transfers, and ordinary-course debt service and repayment activities necessary to comply with Nexstar’s financing obligations.
It also allows Nexstar to take reasonable actions necessary to maintain Tegna’s day-to-day operations and allows Nexstar to perform all obligations required under its debt instruments, SEC reporting requirements, or refinancing transactions.
In addition it allows Nexstar to require that management of Tegna adhere to the interim operating covenants set forth in the Merger Agreement and allows Nexstar to require that management of Tegna adhere to the interim operating covenants set forth in the Merger Agreement.
