UPDATE 2-Judge backs ION Media's bankruptcy exit plan

* ION Media Networks rejects last minute creditor offer

* Judge rules against Cyrus over FCC licenses (Adds details from court hearing, judge's decision)

By Emily Chasan and Caroline Humer

NEW YORK, Nov 12 (Reuters) - A U.S. judge on Thursday said he would approve a reorganization plan from bankrupt U.S. television station owner ION Media Networks Inc (IION.PK), rejecting a creditor's last-minute $250 million offer for the control of the company.

At a hearing in U.S. bankruptcy court in Manhattan, Judge James Peck rejected arguments from creditor Cyrus Capital Partners that ION's reorganization plan could not be approved because it was based on invalid liens to ION's broadcast licenses.

Judge Peck said he would approve ION's plan, which has the support of its first-lien lenders, and would allow the company to exit bankruptcy protection as a stand-alone entity with a lighter debt load.

ION, the owner and operator of the ION Television broadcast network, filed for bankruptcy protection in May, just hours before reaching an accord with a majority of its senior first-lien debtholders to convert debt to equity in a prenegotiated financial restructuring.

On Monday, Cyrus had offered $250 million to refinance ION's debtor-in-possession bankruptcy loan in exchange for a 62.5 percent controlling stake in the reorganized company.

ION's board of directors rejected that offer earlier on Thursday.