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Court OKs Freedom reorganization plan
Deal allows the O.C. Register's parent firm to shed $450 million in debt.
By Kristen SchottPublished: March 09, 2010 10:17 AM
A U.S. Bankruptcy Court in Delaware has approved Irvine-based Freedom Communications reorganization plan.
The company, which owns 90 daily and weekly publications including the Orange County Register, filed for Chapter 11 bankruptcy in September with roughly $770 million in debt.
Under the new plan, Freedom will be able to shed $450 million in debt. The company will also be turned over to its secured lenders, which include JPMorgan Chase, according to media reports.
"Navigating through Chapter 11 as rapidly as we have is a remarkable achievement, testifying to the hard work of all involved," says Freedom CEO Burl Osborne. "We have worked closely with our major constituents to implement a plan that treats our stakeholders fairly while deleveraging the company and positioning it for future success."
Once Freedom emerges from Chapter 11 – which it hopes will take place by the end of the month – the company will receive a $25 million revolving credit facility from General Electric Capital Corp. The move will give the firm the necessary liquidity to meet its needs, according to a statement.
The court also approved Freedom's sale of its Phoenix business to 1013 Communications LLC, an affiliate of Thirteenth Street Media. This deal is expected to close by the end of the month.
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The company, which owns 90 daily and weekly publications including the Orange County Register, filed for Chapter 11 bankruptcy in September with roughly $770 million in debt. Under the new plan, Freedom will be able to shed $450 million in debt. The company will also be turned over to its secured lenders, which include JPMorgan Chase, according to media reports. "Navigating through Chapter 11 as rapidly as we have is a remarkable achievement, testifying to the hard work of all involved," says Freedom CEO Burl Osborne. "We have worked closely with our major constituents to implement a plan that treats our stakeholders fairly while deleveraging the company and positioning it for future success." Once Freedom emerges from Chapter 11 – which it hopes will take place by the end of the month – the company will receive a $25 million revolving credit facility from General Electric Capital Corp. The move will give the firm the necessary liquidity to meet its needs, according to a statement. The court also approved Freedom's sale of its Phoenix business to 1013 Communications LLC, an affiliate of Thirteenth Street Media. This deal is expected to close by the end of the month. Related headlines Workforce Management magazine packs for Chicago FrontGate Media partners with Washington Times Steve Forbes talks politics, economics at local event |
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