Key court approval comes 60 days after start of New Vision’s restructuring process that is now nearing completion. The plan eliminates all of New Vision’s debt and guaranteed obligations of over $400 million.
New Vision Television announced that the company’s plan of reorganization has been approved by the United States Bankruptcy Court, District of Delaware. The court’s decision signals an imminent end to New Vision’s restructuring process, the company said.
New Vision began its restructuring process on July 13 with the support of the company’s first- and second-lien debt holders, and New Vision’s debt holders yesterday unanimously supported the company’s reorganization plan. New Vision owns or provides services to 14 major network-affiliated television stations across the United States.
Under the plan, as approved by the court, all of New Vision’s debt and guaranteed obligations of more than $400 million will be eliminated. New Vision will be provided with sufficient capital to ensure the company’s uninterrupted business operations, and New Vision’s existing management and employees will remain in place.
“New Vision has reached an important milestone,” said Jason Elkin, New Vision’s founder and CEO. “As we began this restructuring process, we promised our employees, our viewers and our advertisers that New Vision wouldn’t miss a beat, and we haven’t. Our daily business hasn’t been impacted at all: Jobs and benefits for our employees are intact; advertisers have continued to receive top customer service; and our stations have continued to invest in best-of-class news coverage and other programming. Now, with the court’s approval of our reorganization plan, the way is clear for New Vision to emerge from this restructuring process in the very near future — as a financially strong and agile company, with great employees, loyal advertisers, committed local audiences, and valuable geographic and network diversification among our stations.”
New Vision’s restructuring is subject to the prior consent of the FCC. New Vision has sought such consent and said it expects approval shortly.
“New Vision’s tremendous progress in just 60 days is a tribute to everyone who has been involved,” concluded Elkin. “We are grateful for the tremendous faith our debt holders have shown in New Vision’s business model and future prospects, and we are thankful for the dedication and loyalty of our employees, advertisers and viewers.”
Moelis & Co. is serving as financial adviser to New Vision Television, and Locke Lord Bissell & Liddell is serving as legal counsel for the restructuring.