Schedule 13D
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
SCHEDULE
13D
(Rule
13d-101)
INFORMATION
TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13d-2(a)
Ion
Media Networks, Inc.
(Name
of
Issuer)
Class
A Common Stock, $0.001 Par Value Per Share
(Title
of
Class of Securities)
46205A103
(CUSIP
Number)
Abbe
L.
Dienstag, Esq.
Kramer
Levin Naftalis & Frankel LLP
1177
Avenue of the Americas
New
York, New York 10036
(Name,
Address and Telephone Number of
Person
Authorized to Receive Notices
and
Communications)
May
1,
2007
(Date
of
Event which Requires Filing
of
this
Statement)
If
the
filing person has previously filed a statement on Schedule 13G to report the
acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f), or 13d-1(g), check the following
box: o.
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Contrarian
Capital Management, L.L.C.
______________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
o
(b) x
______________________________________________________________________________
3)
SEC USE ONLY
______________________________________________________________________________
4)
SOURCE OF FUNDS AF
______________________________________________________________________________
5) CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS
2(d)
OR 2(e) o
______________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
______________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF 290,625*
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY 1,829,375*
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON 290,625*
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
1,829,375*
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,120,000*
___________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.3%
___________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
OO,
IA
___________________________________________________________________________________
* Represents
shares issuable
upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Contrarian
Capital Fund I, L.P.
___________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) o
(b) x
___________________________________________________________________________________
3)
SEC USE ONLY
___________________________________________________________________________________
4)
SOURCE OF FUNDS WC
___________________________________________________________________________________
5) CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) o
___________________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
___________________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF 1,274,375*
SHARES
____________________________________________________________
BENEFICIALLY
8) SHARED
VOTING POWER
OWNED
BY none
EACH ____________________________________________________________
REPORTING
9) SOLE
DISPOSITIVE POWER
PERSON 1,274,375*
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
none
____________________________________________________________________________________
11)
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,274,375*
____________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
o
____________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.0%
____________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
PN
______________________________________________________________________________________________________________________
* Represents
shares issuable
upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Contrarian
Equity Fund, L.P.
___________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) o
(b) x
___________________________________________________________________________________
3)
SEC USE ONLY
___________________________________________________________________________________
4)
SOURCE OF FUNDS WC
___________________________________________________________________________________
5) CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) o
___________________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
___________________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF 270,000*
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY none
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON 270,000*
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
none
__________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
270,000*
__________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES o
__________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
__________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
PN
__________________________________________________________________________________
* Represents
shares issuable
upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Contrarian
Long Short, L.P.
___________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) o
(b) x
___________________________________________________________________________________
3) SEC
USE ONLY
___________________________________________________________________________________
4) SOURCE
OF FUNDS WC
___________________________________________________________________________________
5) CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO
ITEMS
2(d) OR 2(e) o
___________________________________________________________________________________
6) CITIZENSHIP
OR PLACE OF ORGANIZATION
Delaware
___________________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF 285,000*
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY none
EACH ____________________________________________________________
REPORTING
9) SOLE
DISPOSITIVE POWER
PERSON 285,000*
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
none
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
285,000*
___________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
___________________________________________________________________________________
14)
TYPE OF REPORTING PERSON
PN
____________________________________________________________________________________________________________________
* Represents
shares issuable
upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Litespeed
Management LLC
___________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) o
(b)x
___________________________________________________________________________________
3)
SEC USE ONLY
___________________________________________________________________________________
4)SOURCE
OF FUNDS AF
___________________________________________________________________________________
5)
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO
ITEMS 2(d) OR 2(e) o
___________________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
___________________________________________________________________________________
7)
SOLE VOTING POWER
NUMBER
OF 1,406,250*
SHARES
____________________________________________________________
BENEFICIALLY
8) SHARED
VOTING POWER
OWNED
BY none
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON 1,406,250*
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
none
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,406,250*
___________________________________________________________________________________
12)
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.1%
___________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
OO,
IA
____________________________________________________________________________________________________________________
* Represents
shares issuable
upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Litespeed
Master Fund, Ltd.
_____________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) o
(b) x
______________________________________________________________________________
3)
SEC USE ONLY
______________________________________________________________________________
4)
SOURCE OF FUNDS WC
______________________________________________________________________________
5)
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO
ITEMS 2(d) OR 2(e) o
______________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman
Islands
___________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF 1,406,250*
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY none
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON 1,406,250*
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
none
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,406,250*
___________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.1%
___________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
CO
___________________________________________________________________________________
* Represents
shares issuable
upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ore
Hill
Partners LLC
____________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
o
(b) x
____________________________________________________________________________________
3)
SEC USE ONLY
____________________________________________________________________________________
4)
SOURCE OF FUNDS AF
____________________________________________________________________________________
5) CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) o
____________________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
____________________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF none
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY 1,525,660*
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON none
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
1,525,660*
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,525,660*
___________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.3%
___________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
OO,
IA
___________________________________________________________________________________
|
|
* Other
than 4,410 shares of common stock, represents shares issuable upon
conversion of 9 ¾% Series A Convertible Preferred
Stock.
|
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ore
Hill
Hub Fund Ltd.
___________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
o
(b) x
___________________________________________________________________________________
3)
SEC USE ONLY
___________________________________________________________________________________
4)
SOURCE OF FUNDS WC
___________________________________________________________________________________
5)
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO
ITEMS 2(d) OR 2(e) o
___________________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman
Islands
___________________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF none
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY 1,463,785*
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON none
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
1,463,785*
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,463,785*
___________________________________________________________________________________
12) CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
___________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
CO
___________________________________________________________________________________
|
|
* Other
than 4,410 shares of common stock, represents shares issuable upon
conversion of 9 ¾% Series A Convertible Preferred
Stock.
|
SCHEDULE
13D
CUSIP
No. 46205A103
1) NAME
OF REPORTING PERSON
S.S.
OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Kinney
Hill Credit Opportunities Fund, Ltd.
___________________________________________________________________________________
2)
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
o
(b) x
___________________________________________________________________________________
3)
SEC USE ONLY
___________________________________________________________________________________
4)
SOURCE OF FUNDS WC
___________________________________________________________________________________
5)
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO
ITEMS 2(d) OR 2(e) o
___________________________________________________________________________________
6)
CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman
Islands
___________________________________________________________________________________
7) SOLE
VOTING POWER
NUMBER
OF none
SHARES
____________________________________________________________
BENEFICIALLY 8) SHARED
VOTING POWER
OWNED
BY 61,875*
EACH ____________________________________________________________
REPORTING 9) SOLE
DISPOSITIVE POWER
PERSON none
WITH ____________________________________________________________
10) SHARED
DISPOSITIVE POWER
61,875*
___________________________________________________________________________________
11) AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
61,875*
___________________________________________________________________________________
12)
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES o
___________________________________________________________________________________
13) PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
___________________________________________________________________________________
14) TYPE
OF REPORTING PERSON
CO
___________________________________________________________________________________
* Represents
shares issuable upon conversion of 9 ¾% Series A Convertible Preferred
Stock.
Item
1. Security
and Issuer.
This
statement on Schedule 13D (the “Statement”) relates to the Class A Common Stock,
$0.001 par value per share (the “Common Stock”), of ION Media Networks, Inc., a
Delaware corporation (the “Company”). The principal executive offices
of the Company are located at 601 Clearwater Park Road, West Palm Beach, Florida
33401.
Item
2. Identity
and Background.
(a)
- (c) This Statement on Schedule
13D is being filed on behalf of Contrarian Capital Management, L.L.C.
(“Contrarian Capital Management”), Contrarian Capital Fund I, L.P. (“Contrarian
Capital Fund I”), Contrarian Equity Fund, L.P. (“Contrarian Equity Fund”),
Contrarian Long Short, L.P. (“Contrarian Long Short”), Litespeed Management LLC
(“Litespeed Management”), Litespeed Master Fund, Ltd. (“Litespeed Master Fund”),
Ore Hill Partners LLC (“Ore Hill Partners”), Ore Hill Hub Fund Ltd. (“Ore Hill
Hub Fund”) and Kinney Hill Credit Opportunities Fund, Ltd. ("Kinney Hill Fund")
(collectively, the “Reporting Persons”).
Contrarian
Capital Management, a
Delaware limited liability company and a registered investment adviser engaged
in the management of institutional client accounts, serves as investment manager
to, and has voting and investment discretion over, certain investment vehicles
and managed accounts. Specifically, Contrarian Capital Management
serves as the general partner of Contrarian Capital Fund I, Contrarian Equity
Fund and Contrarian Long Short, each a Delaware limited partnership that invests
and trades in securities and financial instruments. The principal
business address of Contrarian Capital Management, Contrarian Capital Fund
I,
Contrarian Equity Fund, and Contrarian Long Short is 411 West Putnam
Avenue, Suite 225, Greenwich, Connecticut 06830. Jon R. Bauer is the
managing member of Contrarian Capital Management.
Litespeed
Management, a Delaware
limited liability company and a registered investment adviser, serves
as investment manager to, and has voting and investment discretion over, certain
investment vehicles and managed accounts. Specifically, Litespeed
Management serves as investment manager of Litespeed Master Fund, a Cayman
Islands registered company that invests and trades in securities and financial
instruments. The principal business address of Litespeed Management
is 237 Park Avenue, Suite 900, New York, New York 10016, and the principal
business address of Litespeed Master Fund is Litespeed Master Fund, Ltd. c/o
BNY
Alternative Investment Services Ltd., 18 Church Street, Skandia House Hamilton
HM 11 Bermuda. Jamie Zimmerman is the managing member of Litespeed
Management.
Ore
Hill
Partners, a Delaware limited liability company and a registered investment
adviser, serves as investment manager to, and has voting and investment
discretion over, certain investment vehicles and managed
accounts. Specifically, Ore Hill Partners serves as investment
manager of Ore Hill Hub Fund and Kinney Hill Fund, both Cayman Islands
registered companies that invest and trade in securities and financial
instruments. The principal business address of Ore Hill Partners is
650 Fifth Avenue, 9th Floor, New York, New York 10019, the principal business
address of Ore Hill Hub Fund is c/o BISYS Hedge Fund Services (Cayman) Limited,
27 Hospital Road, P.O. Box 1748GT, Cayman Corporate Centre, George Town, Grand
Cayman, Cayman Islands, BW, and the principal business address of Kinney Hill
Fund is c/o Maples Finance Limited, P.O. Box 1093GT, Queensgate House,
South Church Street, George Town, Grand Cayman, Cayman Islands, BWI. Benjamin
Nickoll and Frederick Wahl are the managing members of Ore Hill
Partners.
(d)
-
(e) During the last five years, none of the Reporting Persons or any
other person identified in response to this Item 2 was convicted in a criminal
proceeding (excluding traffic violations and similar misdemeanors) or was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding
any
violation with respect to such laws.
(f) Each
natural person identified in Item 2 is a citizen of the United
States.
Item
3. Source
and Amount of Funds or Other Consideration.
Except
as
noted, the shares of common stock beneficially owned by the Reporting Persons
are shares issuable upon conversion of the Company’s 9 ¾% Series A Convertible
Preferred Stock (the “9 ¾% Preferred Stock” and, together with the Common Stock,
the “Securities”).
The
amount of funds used to purchase the Securities by each of the
Reporting Persons was as follows:
| |
|
|
Contrarian
Capital Management – Managed Accounts
|
$
2,017,650
|
| |
|
|
Contrarian
Capital Fund I
|
$
8,121,650
|
| |
|
|
Contrarian
Capital Equity
|
$
1,677,550
|
| |
|
|
Contrarian
Long Short
|
$
1,806,575
|
| |
|
|
Litespeed
Master Fund
|
$
9,812,395
|
| |
|
|
Ore
Hill Hub Fund*
|
$12,137,627
|
| |
|
|
Kinney
Hill Fund
|
$
326,700
|
* Includes
4,410
shares of Common Stock.
The
purchase of the Securities in each case was funded with the respective working
capital of the Reporting Persons or their affiliates, which may include margin
loans incurred from time to time in the ordinary course.
Item
4. Purpose
of Transaction.
Each
of
the Reporting Persons acquired beneficial ownership of the shares of Common
Stock to which this Statement relates for investment purposes.
On
May 1,
2007, the Reporting Persons formed an ad hoc committee of holders of the 9
¾%
Preferred Stock, and presented to the Board of Directors of the Company a
capital restructuring proposal. A copy of this proposal is filed as
an Exhibit 2 to this Schedule 13D and is hereby incorporated by reference.
On
May 4, 2007, the Company issued a joint press release with Citadel Investment
Group, L.L.C. ("Citadel") and NBC Universal, Inc. ("NBC Universal"), announcing
that the Company and affiliates of Citadel and NBC Universal have entered
into an agreement for a comprehensive recapitalization of the Company. The
Reporting Persons are currently re-evaluating their respective positions in
light of the announcement and actions taken by the Company in furtherance
thereof.
Except
as
set forth in this Item 4, none of the Reporting Persons has any present plans
or
proposals that relate to or would result in any of the actions specified in
clauses (a) through (j) of the instructions to Item 4 of Schedule
13D.
Item
5. Interest
in Securities of the Issuer.
(a) Contrarian
Capital Management may be deemed to be the beneficial owner of 2,120,000 shares
issuable upon conversion of shares of 9 ¾% Preferred Stock,1
constituting approximately 3.3%2of the
outstanding shares of Common Stock, held as follows:
| |
|
Shares
of
9
3/4 % Preferred Stock
|
|
Common
Stock
Issuable
on
Conversion1
|
|
Percentage
of
Outstanding
Shares2
|
| |
|
|
|
|
|
|
|
|
Contrarian
Capital Management -- Managed Accounts
|
|
465
|
|
290,625
|
|
0.4%
|
| |
|
|
|
|
|
|
|
|
Contrarian
Capital Fund I
|
|
2,039
|
|
1,274,375
|
|
2.0%
|
| |
|
|
|
|
|
|
|
|
Contrarian
Capital Equity
|
|
432
|
|
270,000
|
|
0.4%
|
| |
|
|
|
|
|
|
|
|
Contrarian
Long Short
|
|
456
|
|
285,000
|
|
0.4%
|
| |
|
|
|
|
|
|
|
Litespeed
Management may be
deemed to be the beneficial owner of 1,406,250 shares of Common Stock issuable
upon conversion of 2,250 shares of 9 ¾% Preferred Stock,1
constituting approximately 2.1 %2 of the outstanding
shares of Common Stock, held by Litespeed Master Fund.
Ore Hill Partners may be deemed to be the beneficial owner of (i) 4,410 shares
of Common Stock and (ii) 1,463,785 shares of Common Stock issuable upon
conversion of 2,335 shares of 9 ¾% Preferred Stock,1 constituting
approximately 2.3%2 of the Common Stock outstanding, held
as follows:
| |
Shares
of
Common
Stock
|
|
Shares of
9/34%
Preffered
Stock
|
|
Common
Stock
Issuable
on
Conversion1
|
|
Total
Common
Stock
|
|
Percentage
of
Outstanding
Shares2
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Ore
Hill Hub Fund |
4,410
|
|
2,335
|
|
1,459,375
|
|
1,463,785
|
|
2.2%
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Kinney
Hill Fund
|
0
|
|
99
|
|
61,875
|
|
61,875
|
|
0.1%
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
(b) Contrarian
Capital Management may be deemed to have shared voting and dispositive power
over the Securities held in managed accounts and sole voting and dispositive
power over the Securities held by Contrarian Capital Fund I , Contrarian Capital
Equity and Contrarian Long Short.
Litespeed
Management may be deemed to have sole voting and dispositive power over the
Securities held by Litespeed Master Fund.
Ore
Hill
Partners may be deemed to have shared voting and dispositive power over the
Securities held by Ore Hill Hub Fund and Kinney Hill Fund.
(c) Except
as set forth on Schedule I, no person identified in Item 2 has effected any
transaction in shares of Common Stock or 9 ¾% Preferred Stock during the
past 60 days.
----------------------------------------
1
Each share of 9 ¾%
Preferred Stock is convertible into 625 shares of Common Stock.
2Based
upon 65,320,057 shares of Common Stock outstanding as of March 16, 2007,
as
reported in the Company’s Form 10-K for the year ended December 31,
2006.
|
Item
6.
|
Contracts,
Arrangements, Understanding or Relationships With Respect
to
|
|
|
Securities
of the Issuer.
|
The
Reporting Persons have agreed that, without their mutual consent, no Reporting
Person will acquire any securities of the Company if, as
a result of such acquisition, the beneficially ownership of Common Stock by
all
the Reporting Person in the aggregate would exceed 10% of the outstanding shares
of Common Stock.
|
Item
7.
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Material
to be Filed as Exhibits.
|
|
Exhibit
No.
|
Exhibit
Description
|
|
99.1
|
Agreement
of Joint Filing among the Reporting Persons, dated May 11,
2007.
|
| |
|
|
99.2
|
Capital
Restructuring Proposal for Ion Media Networks, Inc., Presented by
the Ad
Hoc Committee of Holders of the 9 ¾% Series A Convertible Preferred Stock
of Ion Media Networks, Inc.
|
SIGNATURES
After
reasonable inquiry and to the best knowledge and belief of the undersigned,
the
undersigned certify that the information set forth in this Statement is true,
complete and correct.
CONTRARIAN
CAPITAL MANAGEMENT, L.L.C.
By:
/s/ Jon R.
Bauer
Name:
Jon
R. Bauer
Title: Managing
Manager
CONTRARIAN
CAPITAL FUND I, L.P.
By:
/s/ Jon R.
Bauer
Name:
Jon
R. Bauer
Title: Managing
Member of General Partner
CONTRARIAN
EQUITY FUND, L.P.
By:
/s/ Jon R.
Bauer
Name:
Jon
R. Bauer
Title: Managing
Member of
General Partner
CONTRARIAN
LONG SHORT, L.P.
By:
/s/ Jon R.
Bauer
Name:
Jon
R. Bauer
Title:
Managing
Member of
General Partner
LITESPEED
MANAGEMENT LLC
By:
/s/ Jamie Zimmerman
Name:
Jamie Zimmerman
Title: Managing
Member
LITESPEED
MASTER FUND, LTD.
By:
/s/ Jamie Zimmerman
Name:
Jamie Zimmerman
Title:
Managing Director
ORE
HILL
PARTNERS LLC,
INDIVIDUALLY
AND ON BEHALF OF
ORE
HILL
HUB FUND LTD. AND
KINNEY
HILL CREDIT OPPORTUNITIES FUND, LTD.
By:
/s/ Claude A.
Baum
Name:
Claude A. Baum
| |
|
SCHEDULE
I
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| |
|
|
|
|
|
|
|
|
|
|
Transactions
in shares of Common Stock and 9 ¾% Preferred Stock by the Reporting
Persons within the past 60 days.1, 2
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Ore
Hill Hub Fund
Common
Stock
|
|
|
|
|
|
Date
of Trade
|
Number
of Shares
|
Price
Per Share
|
Total
Amount3
|
|
|
|
|
|
|
|
CS4
3/12/2007
|
50,000
|
$ 1.31
|
$
67,000
|
|
|
|
|
|
|
|
CS4
3/14/2007
|
50,000
|
1.30
|
66,500
|
|
|
|
|
|
|
|
CS4
3/16/2007
|
50,000
|
1.31
|
67,000
|
|
|
|
|
|
|
|
CS4
3/26/2007
|
7,500
|
1.30
|
9,975
|
|
|
|
|
|
|
|
CS4
3/29/2007
|
50,000
|
1.30
|
66,500
|
|
|
|
|
|
|
|
CS4
3/30/2007
|
100,000
|
1.30
|
132,000
|
|
|
|
|
|
|
|
S
4/2/2007
|
(1,390)
|
1.30
|
(1,765)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date
of Trade
|
Number
of Shares
|
Price
Per Share
|
|
|
|
|
|
|
|
|
P
3/15/2007
|
341
|
$
4,300
|
$ 1,466,300
|
|
|
|
|
|
|
|
P
4/27/2007
|
545
|
3,250
|
1,829,186
|
|
|
|
|
|
|
|
P
5/11/2007
|
400
|
4,275
|
1,710,000
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Kinney
Hill Fund
|
|
|
|
|
|
Date
of Trade
|
Number
of Shares
|
Price
Per Share
|
|
|
|
|
|
|
|
|
P 4/25/2007
|
99
|
$ 3,950
|
$
326,700 |
|
|
|
|
|
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| |
|
|
|
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|
|
|
|
|
|
Litespeed
Master Fund
9
¾%Preferred
Stock
|
|
|
|
|
|
|
|
Date
of Trade
|
Number
of Shares
|
Price
Per Share
|
|
|
|
|
|
|
|
|
S
5/10/2007
|
100
|
$
4,800
|
$
479,978
|
|
|
|
|
|
|
| |
|
|
|
|
|
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1 Does
not include shares of 9 ¾% Preferred Stock issued as a quarterly dividend
payable as of March 31, 2007.
|
|
| 2 Transactions
in the Common Stock were effected on the American Stock Exchange.
Transactions in the 9 ¾% Preferred Stock were effected in the
over-the-counter market. |
|
3 Includes
commissions and other execution-related costs.
|
|
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4 Covering
a short position.
|
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