Morris Publishing Group to seek prepackaged bankruptcy

Wednesday, Jan. 13, 2010 4:33 PM
Last updated 5:16 PM
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Morris Publishing Group announced today that it will seek a bankruptcy judge’s assistance in completing its financial restructuring plan.

Augusta-based Morris Publishing, which operates 13 daily newspapers, including The Augusta Chronicle, was unable to obtain nearly unanimous support for its debt swap from creditors and intends to file Chapter 11 bankruptcy before next Wednesday.

The plan of reorganization is not expected to have any noticeable impact on Morris' ongoing operations.

“The Augusta Chronicle is not directly affected by this step and remains profitable despite headlines that might make some think otherwise. We continue to hire new employees, pay our bills and serve the community in new and exciting ways,” said Don Bailey, Chronicle president.

In mid-December, the publishing company started an exchange of $100 million in new notes for its outstanding $278 million in old notes. The exchange offer expired Tuesday night.

For the out-of-court plan to be consummated, the company needed the support from the holders of 99 percent of the debt.

Morris Publishing previously said that it would seek a prepackaged bankruptcy if the 99 percent threshold could not be reached.

A prepackaged bankruptcy means the creditors approve the financial reorganization plan prior to filing.

If the bankruptcy court approves the plan, all of the old debt will be canceled and those creditors will receive a share of the new $100 million in debt, the company explained.

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LancelotLink
0
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LancelotLink 01/13/10 - 05:41 pm
0
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LOL, sneak this story in

LOL, sneak this story in buried in the middle of "Latest News" and hope nobody will notice?

142
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Dan White 01/13/10 - 05:41 pm
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That's really sad. Why can't

That's really sad. Why can't Obama bail out our wonderful hometown newspaper like he did every other business. I hope the Chronicle survives and re-emerges stronger than ever.

Emerydan
9
Points
Emerydan 01/13/10 - 06:00 pm
0
0

I hope the Chronicle survives

I hope the Chronicle survives too.. having a daily local paper is important. I just hope that it gets new ownership that is actually committed to fair and balanced news and who doesn't have their hand in the taxpayer cookie jar at every turn.

storiesihaveread
332
Points
storiesihaveread 01/13/10 - 06:25 pm
0
0

There will never be new

There will never be new ownership at Morris. It was family owned at one time, and will be again one day

sueboo418
36
Points
sueboo418 01/13/10 - 07:13 pm
0
0

Emery you just have no clue!!

Emery you just have no clue!!

MyChronicleUserAccount
0
Points
MyChronicleUserAccount 01/13/10 - 07:18 pm
0
0

Yall all need to study up on

Yall all need to study up on your finance, creditor and bk knowledge. Morris will be fine, but with the change in readership, internet, advertising, etc., who knows what the future is for any media outlet. Look at the new Boxee Box; cable companies are frightened. Lancelot, what hole you been living in; this has been in the news for about a year.

BakersfieldCityLimits
1
Points
BakersfieldCityLimits 01/13/10 - 08:16 pm
0
0

Does this mean that if I owed

Does this mean that if I owed the Chronicle $ 2780.00 they will agree to take $1000.00 at a later time and we can call it even? Didn't think so. In the long run, it's not their fault, the concept of charging someone to read about something that happened 24 hours ago in an age after Al Gore invented the internet and Ted Turner gave us 24 hour cable news in untenable.

MyChronicleUserAccount
0
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MyChronicleUserAccount 01/13/10 - 08:22 pm
0
0

It means if you bought bonds

It means if you bought bonds with risk, unsecured, behind other senior creditors, at high interest rate of income, the market, economy and profit margins change, you take the highest value of return possible.

Notreally
4
Points
Notreally 01/13/10 - 08:39 pm
0
0

sink

sink

Boogaloo
1
Points
Boogaloo 01/13/10 - 08:46 pm
0
0

Is "prepackaged bankruptcy"

Is "prepackaged bankruptcy" something you can put in a microwave?

Notreally
4
Points
Notreally 01/13/10 - 08:48 pm
0
0

sink

sink

AtlasShrugged
0
Points
AtlasShrugged 01/13/10 - 09:29 pm
0
0

The long-term future of

The long-term future of newspapers is doubtful. Once legal ads can be posted on the internet and not in papers many more companies will fail. I'm afraid a hardcopy version of the daily news is going the way of the buggy whip.

iknowitwheniseeit
1
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iknowitwheniseeit 01/13/10 - 09:33 pm
0
0

I'm sure the ACE staff will

I'm sure the ACE staff will somehow blame this on Obama.

fd1962
26
Points
fd1962 01/13/10 - 09:33 pm
0
0

Right, Link, they were going

Unpublished

Right, Link, they were going to announce this Friday late, but figured an earthquake was an even better time. Anybody wonder where the other $178 mil went? But let's get the ACES back condemning those cheating, disgraceful ballplayers...

thewiz0oz
9
Points
thewiz0oz 01/13/10 - 09:53 pm
0
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My first job was delivering

My first job was delivering the Augusta Herald in the 1940's and I still have the Soap Box Derby cars my brothers and I raced in Akron as Augusta champs representing the Augusta Chronicle in the early 1950s with the newspapers name painted on the sides. As times changed the afternoon Herald shutdown in 1993 and the rush of new communication technologies is now challenging existing forms of communicating. A real paradigm shift is taking place. The Morris family will be OK and Augusta will benefit from the painful changes now taking place. The local newspaper is still the number one source of local news and the Chronicle management is very capable of staying competitive with all other sources of news.

Notreally
4
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Notreally 01/13/10 - 09:57 pm
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sink

sink

demented dave
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demented dave 01/13/10 - 11:01 pm
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The Herald didn't shutdown,

The Herald didn't shutdown, it was bought up and closed down by Greedy Billy who's done his best to monopolize all the area newspapers. Maybe if he'd concentrated on running the business instead of playing hotshot opening museums and buying out any competiton then he wouldn't be tying up the courts. Forget the Chronic, read the Metropolitan Spirit - a free newspaper that's doing just fine.

AnotherPerspective
0
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AnotherPerspective 01/13/10 - 11:18 pm
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dave, your name says it all.

dave, your name says it all. Spin, spin, spin. If you read the posts on this Web site, you would think the newspaper was horrible. Yet, everyone reads it. Actually, more people read newspapers nationwide than ever before in history. The only difference is that now it's online. A lot of people don't have land lines anymore at home. That doesn't mean they don't talk, but rather than talk using a different device. All businesses evolve and so will newspapers. It just might not be in print. Besides, could you imagine where TV and radio would get there news from?

Notreally
4
Points
Notreally 01/13/10 - 11:34 pm
0
0

sink

sink

AnotherPerspective
0
Points
AnotherPerspective 01/13/10 - 11:38 pm
0
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Notreally, I think the button

Notreally, I think the button on your keyboard is stuck.

404Law
212
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404Law 01/14/10 - 12:33 am
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Ah man?!?!, Just when I

Ah man?!?!, Just when I started making new friends in the AC comment section. ;-( I have mixed thoughts: On the one hand, we definitely need responsible journalism in Augusta to keep the local government honest. On the other hand, we definitely need responsible journalism in Augusta to keep the local government honest. Did I just repeat myself!?! I hope everyone is having a lovely week. Hang in there - Friday is almost here.

Lp_J
0
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Lp_J 01/14/10 - 01:06 am
0
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sell all that prorerty thet

sell all that prorerty thet own

Lp_J
0
Points
Lp_J 01/14/10 - 01:06 am
0
0

sell all that prorerty thet

sell all that prorerty thet own

Emerydan
9
Points
Emerydan 01/14/10 - 01:53 am
0
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And to think this is who we

And to think this is who we will be paying to run the TEE center

1941
4
Points
1941 01/14/10 - 06:07 am
0
0

sink!!!!

sink!!!!

ionlyknow
0
Points
ionlyknow 01/14/10 - 08:11 am
0
0

Why is that some of you on

Why is that some of you on this forum want Morris to "sink" are you aware if Morris "sinks" 5,000 plus would lose there jobs me included. I really wish I could say some choice words to you fine folks, but my post would get deleted.

LancelotLink
0
Points
LancelotLink 01/14/10 - 08:20 am
0
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"....5,000 plus would lose

"....5,000 plus would lose there jobs me included." You must be one of "THERE" proof reading copy editors. Have a blissful day!

seenitB4
72837
Points
seenitB4 01/14/10 - 09:15 am
0
0

Good luck to Morris & all of

Good luck to Morris & all of the employees..We need the paper & btw I notice all the negative posts remain on here....Sooo you are seeing both sides (not really poster) I don't want anyone to lose their job at ace..what would some of you do for fun without the online posting..

obx2019
2
Points
obx2019 01/14/10 - 09:16 am
0
0

Look 1941 actually completed

Look 1941 actually completed a post and spelled everything correctly. Then again he copied another "verbal wizard" on this site so I guess that's how he managed.

themaninthemirror
0
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themaninthemirror 01/14/10 - 09:29 am
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For those of you who are so

For those of you who are so against the AC, subscribe to the Atlanta Constitution. You will get your fair share of daily liberalism. I for one hopes the AC comes out fine. There is nothing wrong with capitalism. And buying out the competition is a wonderful thing. It happens every day, in every industry. It almost happened in the grocery store industry in the CSRA recently. At least the AC is trying to stay afloat and not cutting jobs.

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