New Vision Television Reaches Agreement With Its First and Second Lien Debt Holders; Company’s Financial Restructuring Moving Forward
LOS ANGELES, July 13 /PRNewswire/ — New Vision Television, which owns and operates 14 major network-affiliated television stations across the United States, announced agreement with its first and second lien 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, provide New Vision with capital to ensure the Company’s uninterrupted business operations, and begin a pre-arranged, consensual bankruptcy proceeding today 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, Chief Executive Officer of New Vision. “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.”
“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,” continued CEO Jason Elkin. “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 Television is the third station ownership group led by Jason Elkin and an experienced management team. Mr. Elkin’s first two station groups were both highly successful. New Vision 3 was formed in July 2006.
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 & Company is serving as financial advisor to New Vision Television, and Locke Lord Bissell & Liddell is serving as legal counsel for the restructuring.
About New Vision Television
With corporate offices in Atlanta and Los Angeles, New Vision Television and its predecessor companies have owned and operated more than 30 television stations across the country since 1993. New Vision’s current holdings include:
Major Network Affiliates KOIN Portland, OR (CBS) KBNZ Bend, OR (CBS) WIAT Birmingham, AL (CBS) KHON Honolulu, HI (FOX) Hawaii's CW 93 Honolulu, HI (CW) KSNW Wichita, KS (NBC) KTMJ Topeka, KS (FOX) KSNT Topeka, KS (NBC) WJCL Savannah, GA (ABC) *WTGS Savannah, GA (FOX) WKBN Youngstown, OH (CBS) WYFX Youngstown, OH (FOX) *WYTV Youngstown, OH (ABC) KIMT Mason City, IA (CBS) * Stations operated under an SSA/JSA agreement. Additional non-affiliate stations *Kansas 22 Wichita, KS Untamed Sports TV Birmingham, AL MyYTV Youngstown, OH MyYTV Mason City, IA * 50/50 partnership with Cox Cable Contact: Lisa Cohen, 310-473-4069 firstname.lastname@example.org
SOURCE New Vision Television