New Vision Exits Bankruptcy

$400 mil in debt is gone and it’s ready to look at acquisitions

By Michael Malone -- Broadcasting & Cable, 9/30/2009 4:59:41 PM

New Vision Television is out of its 2 1/2 month restructuring process, having eliminated $400 million in debt and emerging with “significant working capital,” according to a statement. New Vision, which owns or provides services to 14 network affiliated stations, entered Chapter 11 protection July 13.
 
Founder/CEO Jason Elkin says the company is in tiptop shape. “With the elimination of all $400 million of our historical debt, New Vision now has one of the strongest balance sheets in our sector,” he said. “Being debt-free will enable us to invest in our people, our product and complementary acquisitions to drive New Vision forward, while our competitors continue to focus on daily liquidity and covenant compliance.”
 
Moelis & Company served as financial advisor, and Locke Lord Bissell & Liddell acted as legal counsel for the restructuring.
 
Elkin says the company was able to maintain all jobs and benefits for employees and continue investing in “best-in-class” local news and other programming.
 
When restructuring began, New Vision reached full agreements with all of its first and second lien debt holders, who received equity positions in the company and representation on the board of directors. Elkin will remain chairman and CEO.
 
A number of broadcast outfits, including Tribune and Freedom, remain in bankruptcy.