Morris Publishing poised to emerge from bankruptcy as soon as March 1

By Lisa Kerner

Charlotte, N.C., Feb. 17 - Morris Publishing Group's plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Georgia on Wednesday, according to a company news release.

The confirmation clears the way for Morris Publishing to emerge from bankruptcy as soon as March 1, the company said.

According to Morris Publishing, once it emerges from bankruptcy, the company and its 13 daily newspapers "will operate from a stronger financial position, having reduced its overall principal amount of indebtedness from approximately $418 million to approximately $107 million."

In January Morris Publishing made a pre-packaged bankruptcy filing that had the support of its bondholders and senior secured creditors.

Morris Publishing will exchange $100 million of new second lien secured notes due in 2014 for the cancellation of approximately $278.5 million of principal amount of outstanding senior subordinated unsecured notes due 2013 plus accrued and unpaid interest.

In addition, affiliated entities owned and controlled by the Morris family will make a capital contribution of approximately $85 million and a repayment of intercompany indebtedness of approximately $25 million. This will result in the cancellation of approximately $110 million of Morris Publishing's senior secured debt, the release said.

Morris Publishing owns and operates newspapers, city magazines and free community publications. The company is an affiliate of Morris Communications, a privately held media company based in Augusta, Ga. The Chapter 11 case number is 10-10134.

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