IRATE INVESTORS MAKE RIVAL OFFER FOR ION

A group of investors in the television broadcaster formerly known as Paxson Communications confirmed yesterday that it’s making a rival restructuring offer for the debt-laden company that would wipe out NBC Universal’s 32 percent stake.

As The Post reported earlier this week, the investor group in the company now called Ion Media Networks is angry over what it argues is a self-serving takeover bid offered by NBC and hedge fund Citadel Investment.

The group believes NBC’s shortchanges them because it would buy out common-share investors for $1.41 a share in cash to take Ion private, rather than putting the money toward paying off investors in preferred shares, who rank higher in the payout pecking order.

But the new restructuring plan from the investor group seems to fall prey to the same problem by shutting out NBC, which bought its 32 percent preferred stake in Ion in 1999 for $415 million.

Some industry sources said the new proposal could be saber-rattling, and an attempt to get more money for their stakes.

The group said yesterday it met with Ion’s board and is proposing to restructure the West Palm Beach, Fla., company by canceling its existing preferred and common stock in exchange for new equity, debt or cash.

Under the proposal, common shareholders would be paid $1.25 a share in cash.

NBC would be left with only five-year warrants to purchase 10 percent of Ion’s fully diluted common stock. NBC had no comment.

The most senior preferred investors would get notes worth $300 million in new subordinated debt and 75 percent of new common stock. The next layer of preferred holders would get 25 percent of the new common shares.

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