ION Network May Go Bankrupt!

[Brian Damage]

Ion Media Networks has raised its profile in Hollywood during the past few years by buying off-network rights to series including "Criminal Minds," "Boston Legal," "Ghost Whisperer" and "NCIS."
But now the West Palm Beach, Fla.-based broadcaster, formerly known as Pax TV, is facing balance sheet problems. The company disclosed Wednesday that it was in discussions with lenders on "a comprehensive recapitalization" of its balance sheet. That translates to an effort to restructure its considerable debt, which stands at $2.7 billion, according to the Wall Street Journal. Company is primarily saddled by debt racked up years ago under its former owner, Lowell "Bud" Paxson.

A bankruptcy filing could well be in the cards for Ion if it has trouble finding takers for its debt in this distressed credit market. Biz insiders with business at Ion said they were closely watching the situation, but execs stressed that to date there have been no issues with payments being made on time.

Ion has done programming deals with most of Hollywood's majors in the past few years, including the syndie divisions of Warner Bros., CBS and 20th Century Fox.

A statement issued by Ion Wednesday stressed that its business operations would "continue uninterrupted." The Journal reported that the company is poised to miss a $19 million interest payment coming due in the next few weeks.

The company went private in 2007 after NBC Universal sold the bulk of its stake to private equity firm Citadel.

Biz insiders speculated that Ion seems to be running into the same problems that Pax faced after it loaded up on programming in the late 1990s in an effort to turn its lineup of 60-plus UHF stations, which had been home shopping outlets, into a national broadcast network with an emphasis on family-friendly fare like "Touched by an Angel." However, insiders said the new regime at Ion has carefully focused on making strategic off-net acquisitions and not committing coin to costly original production, as Pax TV did.

It was the value of the stations that drew NBC to invest $415 million for a 32% stake in parent company Paxson Communications in 1999. But the partnership between the sides never gelled, and NBC wound up buying out founder Lowell "Bud" Paxson in 2005. It then facilitated Citadel's $73 million buyout of the company in mid-2007.

http://www.variety.com/article/VR111...goryid=14&cs=1

[Scoobiedoo30]

I hope that does not happen they have good show's

[clj2]

I knew it was bound to happen eventually, the way they've gone shop-happy lately and with the bad economy. It's just like 10 years ago.

I could care less if ION goes away, but would hate to see everyone involved affected.

[TeeVeeCloset]

They deserve it!!! They kept changing programming stratagies....never expanded properly....had nice classic TV WB/Sony deals which weren't used properly and didn't cost much.......could have even gone after evergreen classic barter series which ARE FREE!.....instead they blew big $$$$ shortly after the classic deals and bought shows that were seen on multiple other cable channels....their management/program directors had no idea what they were doing...they needed to grow slowly.....they had access to tons of cheap shows that were never used and could have garnered an audience as new shows....how many times did I say pairing "Its A Living" & "Alice" in the 6PM dinner hour would have been cool....the classic "Life Goes On" at 8PM would have been a wonderful pairing with "The Wonder Years" when it briefly ran at 9PM.....quality shows like "Its A Living" & "Life Goes On" would have looked liked first run programming to most viewers.....they were a tiny UHF network with amazing market coverage and then blew great opportunities and turned into USA Network, Lifetime, etc clones in less than a year of aquiring the classic shows......the sooner they go off the air, the better!

[clj2]

I agree TeeVee. Had they stuck with the good WB/Sony/Uni shows they probably wouldn't be here now or as bad off. Let 'em fold. Just like it was at the turn of the century as PAX....only this time they may not have any salvation.
And BTW, Citadel is on the verge of bankruptcy themselves. Their radio business is HORRID.

An ION press release: http://www.ionmedianetworks.com/press/press.cfm?id=156

[gidgetgrape]

They lost me when they dumped Mama's Family and The Monkees.

[TVFactFan]

Originally Posted by Brian Damage

Ion Media Networks has raised its profile in Hollywood during the past few years by buying off-network rights to series including "Criminal Minds," "Boston Legal," "Ghost Whisperer" and "NCIS."
But now the West Palm Beach, Fla.-based broadcaster, formerly known as Pax TV, is facing balance sheet problems. The company disclosed Wednesday that it was in discussions with lenders on "a comprehensive recapitalization" of its balance sheet. That translates to an effort to restructure its considerable debt, which stands at $2.7 billion, according to the Wall Street Journal. Company is primarily saddled by debt racked up years ago under its former owner, Lowell "Bud" Paxson.

A bankruptcy filing could well be in the cards for Ion if it has trouble finding takers for its debt in this distressed credit market. Biz insiders with business at Ion said they were closely watching the situation, but execs stressed that to date there have been no issues with payments being made on time.

Ion has done programming deals with most of Hollywood's majors in the past few years, including the syndie divisions of Warner Bros., CBS and 20th Century Fox.

A statement issued by Ion Wednesday stressed that its business operations would "continue uninterrupted." The Journal reported that the company is poised to miss a $19 million interest payment coming due in the next few weeks.

The company went private in 2007 after NBC Universal sold the bulk of its stake to private equity firm Citadel.

Biz insiders speculated that Ion seems to be running into the same problems that Pax faced after it loaded up on programming in the late 1990s in an effort to turn its lineup of 60-plus UHF stations, which had been home shopping outlets, into a national broadcast network with an emphasis on family-friendly fare like "Touched by an Angel." However, insiders said the new regime at Ion has carefully focused on making strategic off-net acquisitions and not committing coin to costly original production, as Pax TV did.

It was the value of the stations that drew NBC to invest $415 million for a 32% stake in parent company Paxson Communications in 1999. But the partnership between the sides never gelled, and NBC wound up buying out founder Lowell "Bud" Paxson in 2005. It then facilitated Citadel's $73 million buyout of the company in mid-2007.

http://www.variety.com/article/VR111...goryid=14&cs=1

Sounds like GOOD NEWS to me-lol F*ck ION especially after they got rid of Alice.

[Jude The Obscure]

I won't be shedding any tears over this. The fact is they could have made a nice classic/family niche channel for themselves. Noooooooooo, they drooled over that all mighty adult 18-54 demo that all the others woo, therefore they look like everyone else and do not stand out. They squandered the classic library deals and sold three nights of programming to RHI, which already programs a lot of Hallmark's selections--in fact ION at times looked like Hallmark 2. They teased a lot of fans of Drew Carey, Perfect Strangers, Alice, with their scheduling, only to lead them in disappointment time and again. So boo hoo hoo...let's all cry a river!

[TVFactFan]

Originally Posted by Jude The Obscure

I won't be shedding any tears over this. The fact is they could have made a nice classic/family niche channel for themselves. Noooooooooo, they drooled over that all mighty adult 18-54 demo that all the others woo, therefore they look like everyone else and do not stand out. They squandered the classic library deals and sold three nights of programming to RHI, which already programs a lot of Hallmark's selections--in fact ION at times looked like Hallmark 2. They teased a lot of fans of Drew Carey, Perfect Strangers, Alice, with their scheduling, only to lead them in disappointment time and again. So boo hoo hoo...let's all cry a river!

I would love to be the one at the station to TURN OUT the lights for a final time-lol

[Jude The Obscure]

sort of a Mary Tyler Moore at WJM, thing?

[TVFactFan]

Originally Posted by Jude The Obscure

sort of a Mary Tyler Moore at WJM, thing?

YUP, I would love to have the honors to shut down the "Incredibly Odd Network"

LOL

[browneyes106]

Over the years the network has never been well managed so I'm not by surprised this.

[clj2]

Totally agree, Jude. People that are interested in shows like ER, NCIS, BL, etc are probably going to watch them on cable or first-run. Not some odd network like ION. It'll be less TV drama, and IMO, the sooner they go away, the better. The monthly briefings that get so many responses on this network are amusing....surprised anybody cares lol

ION - The network that could have been...but never was.

[Stuck In The '70's]

Originally Posted by 60s70s80stvfan

Totally agree, Jude. People that are interested in shows like ER, NCIS, BL, etc are probably going to watch them on cable or first-run. Not some odd network like ION. It'll be less TV drama, and IMO, the sooner they go away, the better. The monthly briefings that get so many responses on this network are amusing....surprised anybody cares lol

ION - The network that could have been...but never was.

NCIS is on USA and ER is on TNT and has been for years. Why watch Ion?

[TVFactFan]

Originally Posted by Clint Eastwood Fan

NCIS is on USA and ER is on TNT and has been for years. Why watch Ion?

ION is the "ARENA LEAGUE" VERSION OF TV PROGRAMMING