LOS ANGELES: New Vision Television, mid-sized market broadcaster, received a $28 million line of credit during its bankruptcy proceedings this week. New Vision filed for Chapter 11 on Tuesday with liabilities tenfold of assets--between $10 million and $50 million compared to liabilities of $100 million to $500 million, court documents indicated.
New Vision, doing business as NV Broadcasting, filed for Chapter 11 after reaching an agreement with first- and second-lien debt holders that converts $400 million in debt to equity in the reorganized company.
NV said it received the OK from Judge Kevin Gross of U.S. Bankruptcy Court in Delaware to retain employee pay and benefits. The company owns and/or operates 14 full-power affiliates and four nonaffiliated TV stations. NV was also granted the $28 million credit line that it said will retain it through the restructuring process.
USB AG Stamford Branch is listed among secured creditors. USB was represented by Cahill in late 2007 in a $215 million first-lien and a $100 million second-lien facility for NV, as well as a $30 million mezzanine loan.
Among the company’s unsecured creditors, Kingworld Productions is owed $2.4 million and Warner Bros., $805,451. Buena Vista Television is owed $379,578. Nielsen Media Research is owed $365,280; CBS, $323,356, and Twentieth Century Fox, $184,750.
HBK Capital Management of Dallas is listed as an unsecured creditor for a $1.8 million loan.
NV is represented by Christopher Ward of Polsinelli Shughart PC. Moelis & Company is serving as financial advisor to New Vision Television, and Locke Lord Bissell & Liddell is serving as legal counsel for the restructuring.
The group has duopolies (including nonaffiliates) in Savannah, Ga.; Topeka, Kan.; Mason City, Iowa; Wichita, Kan.; Honolulu and Birmingham, Ala. It has four stations in Youngstown, Ohio, including the CBS, Fox and ABC affiliates as well as one indie.
-- Deborah D. McAdams
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