Ion Media files for Chapter 11 bankruptcy protection - Boston Business Journal:

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The network, which is based in West Palm Beach, filedc for reorganization withthe ’s Southerbn District of New York Tuesday claiminy assets and liabilities of more than $1 The filing was made on behalgf of 117 subsidiaries, including Ion Media of Tampa Inc. The filing comes as Ion agreed to a financial restructurinvg that would wipe out morethan $2.7 billiomn in legacy debt and preferred stock whil providing Ion with $150 million in new funding, according to a release. That’ part of an overalkl $300 million commitment that will convert to equityt once the restructuring is completew and be made availablwe to allof Ion’s firsf lien senior secured debt holders.
“We are pleasedf with the support from our first lien senior debt holderes to resolvethe company’s legacy debt issuesx and fund our television growth plans,” said Brandobn Burgess, Ion’s chairman and chief executive officer, in a “We are positioning the business for growthj and will emerge form the restructuring in a stronvg position to serve viewers, clientsd and stakeholders.” Lowell W. “Bud” Paxson founded Ion Media in basing it in the Tampa Bay area and callinbit . Originally owning WWQT in Paxson later worked with Roy Speer to foundthe , whicyh would be sold to Barryh Diller in 1996.
Followinfg the sale of HSN, Paxson relocated to West Palm divested his radio interests and concentratedc more on hisown network, called , which launched in Augusty 1998. Paxson left the company in November 2005after , a minoritt owner in the stations, startedf to gain a majority interestg in the company, renaming it Ion Media Networks in 2006.