SCI TV creditors OK reorg backed by Perelman cash
SCI -- the largest operator of CBS affiliates other than the network -- owns stations in Atlanta, Cleveland, Detroit and Milwaukee, plus an NBC affiliate in San Diego and an indie in Boston.
SCI said holders of all of its $ 661 million principal amount of senior secured bank debt approved the plan. Also, about 90% of its senior unsecured debt held by voting holders (representing about 73% of the total $ 365 million of outstanding claims) supported it.
The plan includes a cash investment of $ 100 million by financier Ronald O. Perelman's Andrews Group Inc., a wholly owned subsidiary of McAndrews & Forbes Holdings, in return for about 52% of the common stock of the reorganized SCI. Perelman controls a number of companies, including New World Entertainment, Marvel Entertainment Group and Revlon.
In addition, the plan retains a proposal for SCI to purchase CBS affiliate WTVT in Tampa, Fla., from GHTV Inc. for about $ 165 million.
The reorganization plan affects only the holding company and does not contemplate bankruptcy filings by any of SCI's six television station subsidiaries.
"It will be business as usual at all our stations," said George Gillett, CEO and president of SCI. He said the company expects the plan to be approved by the court this spring.
Under the plan, holders of SCI's senior secured bank debt will receive new senior secured debt equal to about 82.5% of their claims under the current credit agreements and 8.5 million shares of common stock (representing about 35% of the reorganized company's common stock).
Holders of SCI's senior unsecured debt will receive 1.5 million shares of common stock and warrants to purchase another 1.5 million common shares (together representing about 13% of the stock).
Holders of SCI's $ 259 million of subordinated public debt and its equity securities will not receive distributions under the plan.
