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Preferred stockholders submit revised restructuring proposal to ION Media
By Lisa Kerner
Charlotte, N.C., April 16 - The ad hoc committee of holders of the 13¼% (now 14¼%) junior exchangeable preferred stock issued by ION Media Networks, Inc. presented a revised transaction proposal to ION's board of directors.
The latest proposal is materially better for ION than the April 11 revised proposal made by Citadel and NBC Universal, Inc., the committee said.
According to a company news release, the transaction proposal:
• creates a simpler capital structure for the company with real value in the new common stock to be publicly traded;
• provides for a more equitable allocation of value across all stakeholders; and
• addresses all ION's concerns expressed in its March 28 letter to the ad hoc committee.
In addition, the ad hoc committee believes the proposed transaction provides substantially higher value to NBC Universal and can be achieved outside of bankruptcy.
According to the committee's term sheet, the 13¼% preferred stockholders will receive a combination of $400 million of new junior subordinated debt and 31.9% of the initial shares of new common stock.
Holders of 9¾% preferred stock will receive $25 million of new junior subordinated debt and 20.2% of the initial shares of new common stock.
Earlier this month, Citadel and NBC Universal modified their Jan. 17 proposal to acquire the company by extending the termination date of the exclusivity period to Nov. 7, 2007 from May 7.
Citadel had previously committed to investing an additional $100 million of capital to enhance liquidity as part of the deal.
ION is a West Palm Beach, Fla., network television broadcast company.
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