Court Approves Regional Publisher’s Restructuring Plan
However, Morris Publishing won’t comment on fate of magazines at this point.
A U.S. bankruptcy court has approved Augusta, Georgia-based newspaper and city magazine publisher Morris Publishing Group’s pre-packaged plan of reorganization. Morris said it could emerge from bankruptcy protection as soon as March 1.
Morris filed its reorganization plan last month. Upon emergence, the publisher will exchange $100 million of new second lien secured notes due in 2014 for the cancellation of roughly $278.5 million of outstanding senior subordinated unsecured debt due in 2013, plus accrued and unpaid interest.
Morris moved ahead with the reorganization after it failed to gain approval from 99 percent of holders of its $278.5 million in senior subordinated notes on the terms of the debt restructuring. In October, Morris said it had reached an agreement with holders of more than 75 percent of those notes on the exchange.
“Once it emerges from bankruptcy, Morris Publishing and its 13 newspapers will operate from a stronger financial position, having reduced its overall principal amount of indebtedness from approximately $418 million to approximately $107 million,” the company said in a statement.
When asked by FOLIO: about the future of its magazines, a spokesperson said the company "doesn’t wish to comment on the magazine side of the business” at this point. Morris’ portfolio includes nearly 20 city magazines—including Augusta, Athens, H magazine and Savannah.