Ion Television - Network Troubles

Network Troubles

In 2003, the predecessor Pax network scaled back its operations. It was originally offering five or six new series each season. That year the number of new series airing on Pax dwindled to just two: Sue Thomas: F.B.Eye, which was pulled in 2005, and Doc, which were pulled in 2004 because Pax's international backer, CTV, pulled out of producing the shows. The organization seemingly recovered a year later when seven TV series made it to Pax's 2004-05 schedule.

In the Spring of 2005, it was reported that Pax intended to break its contract with NBC Universal, which eliminated most of their entertainment programming, and rely on infomercials, talk shows, and other paid programming to help increase cash flow. However, the network issued a press release on May 25, 2005, in which Paxson Communications chairman Lowell "Bud" Paxson was quoted as saying:

In November 2005, NBC Universal was granted a transferrable option to purchase a controlling stake in Paxson Communications. If this option is exercised, NBC would acquire approximately 63 i affiliates. As part of the agreement, Lowell Paxson left the network (and its parent company).

According to a statement on its website, DirecTV planned to terminate its agreement with the i network in February 2006 and would drop i as well as its local channels from the DBS service. DirecTV cited that "most of programming consists of infomercials and other promotional shows", despite an earlier promise by network executives that the network "would consist of general, family-oriented entertainment". To appease DirecTV officials, the network decided to junk some infomercials and shopping shows and replace them with old public domain programming and cancelled PAX originals (see below). The channels were expected to be removed from the service by February 28, 2006. However, in May 2006, it was announced that DirecTV and Ion Media had come to a new carriage agreement.

In early 2006, it was announced that the i affiliates in Memphis, Tennessee (WPXX-TV), Rapid City, South Dakota (KKRA-LP) and Greenville, North Carolina (WEPX-TV, as well as WPXU-TV in Jacksonville, North Carolina) would add programming from MyNetworkTV in September 2006, thus causing programming airing on i to be unavailable on these stations while MNTV is broadcasting. This blow came after losing some affiliates in New Mexico, New York, and Illinois completely (although the New York station, WWBI-LP in Plattsburgh, subsequently rejoined i after a sale that resulted in the affiliation change fell through). In April 2006, it was reported i owed more than US $250,000,000 to creditors. Standard & Poor's reported a much higher debt in March 2008, owing $867,000,000 to creditors and having a bond rating of CCC+/Outlook Negative.

In 2006, i struck several major content deals (see details above) in hopes of assuring its long-term future.

Days after the network changed to Ion, a small California-based entertainment group named Positive Ions, Inc. sued ION Media Networks, claiming that the network stole the "Ion" branding. Positive Ions has registered trademarks on the word "Ion" and has used the mark commercially since 1999. On May 14, 2007, Positive Ions filed for an injunction that, if granted, would require ION Media Networks to change its name once again.

In April 2009, it was announced that Ion was one again facing balance sheet problems. The company disclosed 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 as of April 2009, according to The Wall Street Journal.

On May 19, 2009, Ion Media Networks filed for chapter 11 bankruptcy protection, putting the Ion network under bankruptcy for the second time, saying it had reached an agreement with holders of 60% of its first lien secured debt that would extinguish all of its $2.7 billion in legacy debt and preferred stock and recapitalize the company with a $150 million new funding commitment.

On July 15, 2009, RHI entered into a settlement agreement to resolve a dispute with Ion Media which, if approved by the Bankruptcy Court, will result in the termination of the programming agreement between RHI and Ion.

In late September 2009, a year after Ion purchased WPXX and WEPX/WPXU from Flinn Broadcasting, those stations returned to carrying Ion full-time as they used the out of MyNetworkTV cancelling all existing affiliation agreements in the wake of that network converting to a programming service. WITN took over MyNetworkTV affiliation via a digital subchannel in Greenville/Washington/New Bern NC, with Memphis CW affiliate WLMT picking up only WWE SmackDown in place of WPXX.