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AUGUSTA, Ga. - With the support of a majority of its bondholders, Morris Publishing Group on Monday filed a plan in U.S. Bankruptcy Court for the Southern District of Georgia in Augusta to complete the restructuring of its debt.
Morris asked the court to approve a plan that will reduce bondholder debt through the issuance of $100 million of new second lien secured notes due in 2014 in exchange for the cancellation of approximately $278.5 million principal amount of outstanding senior subordinated notes due in 2013, plus accrued interest.
Holders of approximately 93 percent of the existing notes voted to support the filing of a prepackaged reorganization plan in bankruptcy court.
"The filing is the final step in the financial restructuring we announced last fall," said William S. Morris III, chairman of Morris Publishing Group. "We are pleased that so many of our noteholders agreed to support this move to get Morris Publishing on more solid financial ground."
Under the prepackaged plan, Morris Publishing will reduce its debt from approximately $415 million to $126.5 million. The new notes will bear interest of at least 10 percent, but could bear interest up to 15 percent, some of which may be paid in kind until Morris Publishing Group repays its remaining senior debt. The company reduced its senior debt by $110 million last fall.
Morris Publishing Group will continue to operate its 13 daily newspapers, its non-daily newspapers, its Web sites, city magazines and free community newspapers in the Southeast, Midwest, Southwest and Alaska without interruption. The company said readers and advertisers should notice no change in operations.
For more information on the company's restructuring, visit www.morrisrestructures.com.