The agreement eliminates 100% of company debt and all guaranteed obligations, provides “ample” operating capital and begins pre-arranged, consensual bankruptcy proceeding.
New Vision Television, which owns and operates 14 major network affiliates across the United States, announced agreement with its first and second lien debt holders on a comprehensive financial restructuring plan.
The plan, New Vision said, will eliminate all of New Vision’s debt and guaranteed obligations of more than $400 million, provide New Vision with capital “to ensure the company’s uninterrupted business operations” and begin a pre-arranged, consensual bankruptcy proceeding Monday in the United States Bankruptcy Court, District of Delaware.
“This agreement is powerful news for New Vision’s employees, advertisers and business partners,” said Jason Elkin, the company’s chief executive officer. “Our daily business operations will not miss a beat: Jobs and benefits for our employees will be intact; advertisers will continue to receive top customer service; and our stations will continue to invest in best-in-class local news coverage and other programming. And as soon as the pre-arranged court process has ended, New Vision will emerge as a nimble, well-financed company — with some of the best management and employees in the business — poised to take advantage of future growth opportunities.”
Elkin continued: “New Vision is one of the many highly-leveraged American companies that, even when outperforming their industries, are unable to manage high debt service costs in these difficult economic times. New Vision is a very strong company, with great employees, loyal advertisers, committed local audiences, and valuable geographic and network diversification among our stations. Today New Vision is acting decisively to restructure our debt and strengthen our balance sheet so that our proven and strong business model will once again be the focus of our operations.”
New Vision’s filing today with the U.S. Bankruptcy Court under Chapter 11 of the Bankruptcy Code has the support of New Vision’s first lien and second lien debt holders. New Vision has at the same time secured approximately $30 million in new financing, providing additional liquidity to fund the company’s continued operations and growth.
New Vision will consistently update its employees, advertisers and business partners at newvisiontv.com/restructuring. New Vision has also created a hotline to help answer questions about the restructuring process: 1-888-855-0777.
Finally, New Vision employees and other interested parties can receive Twitter updates by following newvisiontv.
“Everyone at New Vision appreciates the confidence our debt holders are showing in our management, our employees and our fundamentally sound business,” concluded Mr. Elkin. “This legal process, which we expect to conclude within a couple of months, will allow New Vision to emerge in the strongest possible position – a better-financed, more agile company able to serve its clients and customers, produce and purchase the best programming, and focus on new acquisitions.”
Moelis & Co. is serving as financial adviser to New Vision Television, and Locke Lord Bissell & Liddell is serving as legal counsel for the restructuring.