The parent company of KHON television has emerged from bankruptcy following an 80-day restructuring in which it shed more than $400 million of debt.

Atlanta-based New Vision Broadcasting said it is now able to better invest in its employees, product and make complementary acquisitions. It exited a Chapter 11 bankruptcy with a $28 million loan to help fund its operations.

The action removes uncertainty that had hung over New Vision's stations, including KHON, one of its most profitable franchises.

KHON President and General Manager Joe McNamara said the station will pursue on- and off-camera improvements, along with filling open positions, now that the bankruptcy is over.

"We're probably going to spend in the next 18 months a couple of million on upgrades," said McNamara, noting New Vision doesn't have any debt and is in position to invest in its properties.

"It's kind of an interesting position to be in. We've been gearing up for this exit."

Bankruptcy filings show KHON was New Vision's most profitable station during the first eight months of 2009.

KHON had a profit of $1.4 million on revenue of $10.6 million during the eight-month period and has maintained its ratings lead in the 6 p.m. news slot.

New Vision owns 10 other stations that have major network affiliations. Most of these were unprofitable during the first eight months of 2009, court filings show.

"We were able to work hard as team here and be able to get the job done," McNamara said.

Still, he said the station's financial performance is down from prior years because of Hawai'i's economic slowdown.

It previously had revenues of more than $20 million annually.

New Vision's NV Broadcasting LLC unit bought KHON and several other stations in November 2007 just as television advertising began to slump, according to filings.

Late last year it began exploring options and sought either new investments or a sale.

When it couldn't find buyers with enough money, it engineered what's known as a pre-packaged bankruptcy, or a reorganization of finances that had the blessing of secured creditors. NV Broadcasting owns or operates eight full-power stations, including a CBS affiliate in Portland, Ore.

The company said at the time that going through a regular bankruptcy with a protracted process would take a significant toll on its stations, particularly their relationships with advertisers, customers, suppliers and employees.

"New Vision's restructuring process was extraordinarily efficient — about 10 weeks from start to finish," Jason Elkin, New Vision chief executive officer, said in a press statement.

The quick proceedings in part were hastened by major creditors agreeing to forgive loans in exchange for ownership stakes in the company.

McNamara said payments to local vendors are current and none were forced to take a lesser amount in the bankruptcy.

Court filings also show NV's Hawai'i unit had assumed employment contracts as well as retained program contracts and its Fox affiliation.