Morris Restructuring Plan Reduces Debt
plan will cut the newspaper publishing company’s overall debt to $126.5 million from approximately $415 million
January 19, 2010
Morris Publishing Group filed a restructuring plan in bankruptcy court today that will see it issue $100 million in high-yield notes to help restructure its debt.
Morris will issue $100 million in second-lien secured notes due 2014 to existing bondholders, while canceling roughly $278.5 million of outstanding senior subordinated notes due 2013 plus accrued interest. Bondholders representing about 93% of the existing notes voted to support the prepackaged bankruptcy plan.
The plan will cut the company’s overall debt to $126.5 million from approximately $415 million. The new notes will pay out least 10% in interest but could pay as much as 15%. Some of the interest may be paid in kind until Morris repays its remaining senior debt.
The Augusta, Ga.-based newspaper publisher filed its restructuring plan in U.S. Bankruptcy Court for the Southern District of Georgia in Augusta.
Morris had offered to exchange $100 million in new second-lien secured notes for $278.5 million in outstanding 7% senior subordinated notes. The company withdrew the offer when it did not get the required approval of 99% of note holders by Jan. 12. Still, the company managed to reduce its debt by $110 million last fall.
For more information on related topics, visit the following:
