ION Media plan confirmation stay request denied by bankruptcy court

By Caroline Salls

Pittsburgh, Dec. 4 - ION Media Networks, Inc. creditor Cyrus Select Opportunities Master Fund, Ltd.'s request to stay the confirmation of the company's plan of reorganization pending the outcome of Cyrus' appeal was denied Friday by the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, the plan confirmation order allows for cancellation of $47 million of valid claims held by Cyrus and renders an ongoing lawsuit between Cyrus, ION and some of its other lenders entirely moot.

Judge James S. Peck said in Friday's ruling that Cyrus had "failed to meet its burden to obtain the relief requested."

Cyrus said the plan would take effect on Dec. 13 if the confirmation was not stayed.

ION is a West Palm Beach, Fla.-based television broadcaster. The company filed for bankruptcy on May 19, 2009. Its Chapter 11 case number is 09-13125.

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