Owner and operator of Hallmark Channel and Hallmark Movie Channel Crown media Holdings, Inc. announced that the Company has approved and executed definitive agreements relating to a recapitalization of the company.

A special board committee came up with terms which the company entered into its parent corporation, Hallmark Cards, H C Crown Corp. , a process that quietly unfolded throughout the month of February. The process was finalized on the last business day of the month.

Crown media’s “Master Recapitalization Agreement” with HCC and related entities provides for a big recapitalization of the company. Among other provisions, a $315 million principal amount of HCC debt is being restructured into new debt instruments, with $185 million principal amount of HCC debt being converted into convertible preferred stock, and class “B” common stock being converted into Class “A” common stock. Class “A” stock is now the only authorized and outstanding common stock of the company.

The balance of HCC debt, which was approximately $600 million as of December 31, 2009, is also being converted into shares of Class “A” common stock.

“We believe the consummation of the recapitalization will be a very positive development for the company and with the significant reduction in our outstanding debt, will help us maintain the operating health of our company,” said Bill Abbott, president and CEO of Crown media.