Legal News

Court Clears 'Florida Times-Union' Parent to Exit Bankruptcy

By (Breaking Legal News)

Morris Publishing Group's reorganization plan was confirmed in U.S. Bankruptcy Court in Augusta, Ga. Wednesday, clearing the way for the parent of The Florida Times-Union in Jacksonville and a dozen other dailies to emerge from bankruptcy as soon as March 1.

Under the plan confirmed by the court, Morris Publishing will reduce its debt from approximately $418 million to approximately $107 million.

Morris filed a "pre-packaged" bankruptcy reorganization plan in January that was approved in advance by the great majority of its bondholders and senior secured creditors.

Under the plan, Morris will swap $100 million of new second lien secured notes due in 2014 for the cancellation of about $278.5 million of outstanding senior subordinated unsecured notes that are due in 2013.

At the same time, entities owned and controlled by the Morris family will make a capital contribution of approximately $85 million and pay down intercompany debt amounting to about $25 million. That will cancel about $110 million of Morris Publishing's senior secured debt.

Full post as published by Breaking Legal News on February 18, 2010 (boomark / email).