ION Media faced with another complaint related to its exchange offer

By Lisa Kerner

Charlotte, N.C., June 22 - A second complaint was filed against ION Media Networks, Inc. and seven of its directors in a Delaware court by a group of plaintiffs purporting to hold shares of the company's 9¾% series A convertible preferred stock, according to a company news release.

The complaint is "substantially identical" to a previous suit filed in the Court of Chancery of the State of Delaware by plaintiffs claiming to hold shares of the company's 13¼% cumulative junior exchangeable preferred stock and seeking an injunctive and other relief.

On June 8, ION offered to exchange both series of preferreds for newly issued 11% series A mandatorily convertible senior subordinated notes due 2013 and, depending on participation levels in the exchange, either new 12% series A-1 mandatorily convertible preferred stock or 12% series B mandatorily convertible preferred stock.

The exchange offer expires on July 10.

NBC Universal, Inc., Citadel Investment Group LLC and Citadel's affiliate CIG Media LLC are also named as defendants.

The West Palm Beach, Fla., network television broadcast company, believes the complaints are without merit.

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