Lee Pulitzer debtors granted access to noteholders' cash collateral

By Caroline Salls

Pittsburgh, Jan. 6 - Lee Enterprises, Inc.'s Pulitzer debtors have received court approval to use the cash collateral of their pre-bankruptcy collateral agent and pre-bankruptcy noteholders to fund their operations while in bankruptcy, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the cash collateral order, none of the Pulitzer debtors' cash collateral can be used to make payments authorized under Lee's $40 million debtor-in-possession facility, which was also approved on Thursday.

In addition, Lee will be prohibited from using the cash collateral, except with written consent of the required noteholders.

As previously reported, Lee announced in December that St. Louis Post-Dispatch LLC entered into a support agreement with Pulitzer Inc., Star Publishing Co., other Lee affiliates and a group of institutional holders under St. Louis Post-Dispatch's existing note agreement.

The support agreement is tied to an agreement to extend Lee's Pulitzer notes debt maturity to December 2015.

The Pulitzer support agreement will enable implementation of Lee's overall refinancing plan announced in September, including the terms of Lee's previously announced support agreement with specified lenders.

Lee, a Davenport, Iowa-based print and digital provider of local news, information and advertising, filed for bankruptcy on Dec. 12. The Chapter 11 case number is 11-13918.

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