Morris Publishing to emerge from bankruptcy in March

Posted by Alisa Zykova on February 17, 2010 at 11:51 AM

Morris Publishing Group announced today its "pre-packaged" reorganisation plan has been confirmed in U.S. Bankruptcy Court, based in Atlanta, Georgia, Editor & Publisher reported today. After its disclosure statement was approved, the U.S. publisher was predicted to begin debt recovery as early as March 1, according to PR Newswire.

PR Newswire suggested that Morris Publishing and its 13 daily newspapers would be reducing debt from around US$418 million to almost $107 million. Affiliates owned and operated by the Morris family will be offering $85 million in financial aid, Reuters reported today.

The publisher mentioned that it would be substituting $100 million of new second lien secured notes (due in 2014) for the cancellation of approximately $278.5 million of senior subordinated unsecured notes (due in 2013) as well as accumulated and unpaid interest.

"Our commitment is to remain an agile and innovative market-driven newspaper company whose core mission is to gather and distribute news, support our advertisers and publish great newspapers and Web sites," said Chairman William S. Morris III.

Morris Publishing filed the plan in January, with support from bondholders and senior secured creditors. Its dailies include The Florida-Times Union, The Augusta Chronicle , The Savannah Morning News (Georgia), The Athens Banner-Herald (Georgia), Amarillo Globe-News (Texas), Bluffton Today (South Carolina), Brainerd Dispatch (Minnesota), Juneau Empire (Alaska), Log Cabin Democrat (Arkansas), Lubbock Avalanche-Journal; (Texas) Peninsula Clarion (Alaska), The St. Augustine Record (Florida) and The Topeka Capital-Journal (Kansas).