Ion Media Networks Inc. said earlier this week that it has reduced more than $2.7 billion in debt and preferred stock as it emerged from Chapter 11 bankruptcy.
Florida-based Ion, formerly known as Paxson Communications Corp., operates 60 TV stations, including Wilmington-based WPPX-TV, Channel 61, which is expanding into the Philadelphia market, and WQPX, Channel 64, in the Wilkes-Barre-Scranton area.
The company, which filed for bankruptcy protection in May, citing cited more than $1 billion in debt, said it is now debt-free, with equity growth funding from owners that include Avenue Capital, Black Diamond Capital, and Trilogy Capital.
Secured creditors received 62.5 percent of the new stock in exchange for $150 million in financing, and the holders of $858 million in first-lien claims received 37.5 percent of the stock, Bloomberg News reported.
The plan was approved in Bankruptcy Court in Manhattan on Dec. 3, but could not be implemented until a temporary stay was vacated