New Vision Television is heading for what it calls "pre-arranged, consensual" bankruptcy court in Delaware. The owner of 14 stations, New Vision has worked out a restructuring agreement with its first and second lien debt holders that eliminates all of its debt and guaranteed obligations exceeding $400 million.
New Vision CEO Jason Elkin insisted the company would 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," he said. "As soon as the pre-arranged court process has ended, New Vision will emerge as a nimble, well-financed company...poised to take advantage of future growth opportunities."
Elkin conceded that 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, whose stations include KHON Honolulu and WIAT Birmingham, also secured $30 million in new financing.