Affiliated Media emerges from pre-packaged Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, March 19 - Affiliated Media, Inc. has emerged from Chapter 11 bankruptcy, according to a company news release.

The company's plan of reorganization was confirmed on March 4 by judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan was based on a pre-negotiated agreement with Affiliated Media's lenders.

The company said the plan reduces its debt to $165 million from $930 million and involves no management change or change of control in MediaNews Group, which will continue to be led by chairman and chief executive officer William Dean Singleton and president Joseph J. Lodovic IV.

Under the plan:

• The Singleton-led management will be authorized to own 20% of the company through stock and warrants;

• Singleton and Lodovic IV will control the company through their ownership of all class A shares of the company, which entitles them to elect a majority of the board of directors;

• Other stockholders will own class B and class C shares;

• Claims from Affiliated Media's trade creditors, suppliers and employees will be unaffected under the plan and paid in the ordinary course as they come due;

• Senior lenders will trade their existing claims and guarantees for a share of a new secured term loan, with a smaller principal amount but with more collateral and a more financially sound borrower, as well as ownership of a majority of the new equity of the reorganized company, subject to a gradual dilution as a result of grants of restricted stock;

• Subordinated noteholders will receive warrants for future equity; and

• All existing equity interests in Affiliated Media will be cancelled.

Affiliated Media, the Denver-based holding company for MediaNews Group, filed for bankruptcy on Jan. 22. Its Chapter 11 case number is 10-10202.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.