The broadcaster says the action by the Delaware bankruptcy court means it can continue to operate as usual as it enters what “we hope will be a short and consensual bankruptcy process that will restructure all of the company’s debt.”
New Vision Television today announced the approval of all of its first-day motions by the United States Bankruptcy Court for the District of Delaware.
“The court’s prompt action is good news for New Vision’s employees, advertisers, business partners and viewers,” said Jason Elkin, New Vision’s chairman-CEO. “The court’s decision will allow us continue to operate our business as usual. The Court’s quick ruling also marks a smooth entry into what we hope will be a short and consensual bankruptcy process that will restructure all of the company’s debt and lead to the emergence of New Vision as a much stronger entity going forward.”
New Vision received court approval during its first-day hearings to keep all employee pay and benefits intact. The court also approved New Vision’s access on an interim basis to a new $28 million line of credit that will provide ample funding for the company through the remainder of the restructuring process.
Next, the court permitted New Vision to make key operational payments, including for taxes and insurance programs. Under the court’s order, sales incentives will also be funded.
Finally, the court established procedures to streamline the proceedings with the goal of speeding New Vision’s emergence from bankruptcy.
New Vision Television owns and operates 14 major network-affiliated television stations across the United States. On July 13 it announced agreement with all of its debt holders on a comprehensive financial restructuring plan.
The plan will eliminate all of New Vision’s debt and guaranteed obligations of more than $400 million and provide New Vision with capital to ensure the company’s uninterrupted business operations.
As a result of this agreement, New Vision began a pre-arranged, consensual bankruptcy proceeding today in the United States Bankruptcy Court, District of Delaware.
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.
Moelis & Co. is serving as financial adviser to New Vision Television, and Locke Lord Bissell & Liddell is serving as legal counsel for the restructuring.