12.17.2009 03:00 PM
Court Stays ION’s Exit From Chapter 11
NEW YORK: A federal court today stayed a ruling by a lower
bankruptcy court to approve ION Media’s reorganization plan. The news of the
stay was released by Cyrus Capital Partners, a creditor in the case that filed
an objection with the U.S. Bankruptcy Court for the Southern District of New
York over ION’s plan.
Cyrus said ION’s reoganization was improperly based on liens against the
company’s broadcast licenses. That court rejected a $250 million takeover offer
from Cyrus in November and approved ION’s plan, which eliminated $2.7 billion
in debt and turned $150 million in debtor-in-possession financing into equity.
ION was expected to emerge from bankruptcy today. Cyrus said it expected to
receive a court date in January to hear its appeal.
ION Media, which owns and operates the ION TV network and stations, filed for
Chapter 11 in May just as it reached an agreement with first-lien creditors for
the DIP financing.
More on ION:
16, 2009: “ION Creditor Takeover
A federal judge rejected a $250 million offer from a creditor of bankrupt
ION Media to takeover the company.
October 6, 2009: “Court Approves ION’s
The disclosure statement proffered by ION Media Networks on its proposed
reorganization has received the court’s blessing.
July 6, 2009: “Court Approves DIP
Financing for ION Media”
ION Media said it received final approval for its $150 million
debtor-in-possession financing plan.
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
May 21, 2009: “ION Files for
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.
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.