Ion Files For Bankruptcy Protection

Ion Media Networks filed for Chapter 11 bankruptcy protection Tuesday, stating it has reached an agreement with several debtholders to swap their debt for equity in a newly capitalized company. The company, which filed yesterday, said it had reached an agreement with holders of 60% of its first lien secured debt that would extinguish all of its $2.7 billion in legacy debt and preferred stock and recapitalize the company with a $150 million new funding commitment underwritten by a group of first lien holders. Participation in the new funding, 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. The bankruptcy appears similar to one Charter Communications filed in March. Ion owns and operates about 60 broadcast television stations and its Ion Television network reaches about 96 million cable, satellite and broadcast homes.