Status of newspaper publishers that filed Ch. 11

Status of newspaper publishers that filed Ch. 11

Status of some of the newspaper publishers that have filed for bankruptcy protection:

— Star Tribune Holdings Corp. — Heavy debt from Avista Capital Partners’ 2007 purchase of Star Tribune prompted Jan. 15 bankruptcy filing. Under reorganization plan, $490 million of debt to senior lenders would be reduced to about $100 million when the newspaper emerges from Chapter 11 at the end of September. The main lenders — led by investment group Angelo, Gordon & Co. — would become new owners and choose new management. All 10 unions agreed to concessions.

— Tribune Co. — The owner of the Los Angeles Times, Chicago Tribune, other daily newspapers and TV stations sought Chapter 11 protection in December, burdened by $13 billion in debt, most from a complex buyout in which Sam Zell took the company private in 2007. Architects of the buyout had made overly optimistic projections for ad revenue. A sale of Chicago Cubs awaits approval by a federal bankruptcy judge in Wilmington, Del., and by Major League Baseball. Tribune has yet to file a reorganization plan.

— Sun-Times Media Group Inc. — The owner of the Chicago Sun-Times and suburban newspapers filed for bankruptcy protection in March. A private investor group led by Chicago banker James Tyree has agreed to bid $5 million in cash for the company’s assets and would assume about $20 million in liabilities. The so-called “stalking horse” bid is contingent on no other higher bidder coming forward, as well as agreement from unions and a judge’s approval.

— Philadelphia Newspapers LLC — Creditors are trying to take control of The Philadelphia Inquirer and Philadelphia Daily News and have hired Bob Hall, a longtime publisher of the two daily newspapers, as an adviser. It’s been a hard-fought Chapter 11 case, begun in February, with Philadelphia Newspapers proposing to shed most of its $400 million in debt by repurchasing the company through a bankruptcy auction for about 22 cents on the dollar. The proposal calls for keeping Brian Tierney as publisher.

— Journal Register Co. — The owner of the New Haven (Conn.) Register and other daily newspapers emerged from bankruptcy protection last month. The company had listed $692 million in debt — the bulk held by JPMorgan Chase. The restructuring plan cut what the company owed to secured lenders to $225 million in return for ownership. The plan wiped out stockholders, largely investment funds, and split a $2 million pool among unsecured lenders. Before making its filing in February, the company had agreed with most of its lenders on a reorganization plan.

— Freedom Communications Holdings Inc. — On Sept. 1, the owner of The Orange County Register in California and dozens of other newspapers sought bankruptcy protection. The prepackaged plan approved by a majority of the company’s lenders would leave the family and two investment firms that own Freedom with no more than 2 percent of the company. The rest of the stock would go to 27 lenders owed nearly $771 million; lenders, led by JPMorgan Chase & Co., would forgive most of that debt.

— Creative Loafing Inc. — A New York hedge fund snapped up the newspaper chain during a bankruptcy auction and promised to keep its six free alternative weeklies running as usual. Atalaya Capital Management bid $5 million for the alt-weeklies in Atlanta, Chicago, Washington, D.C., Charlotte, N.C., and Sarasota and Tampa, Fla. Creative Loafing got into debt trouble when it borrowed roughly $40 million in 2007 to buy Washington City Paper and the Chicago Reader. The company filed for Chapter 11 last September.