Friday, September 20, 2013

GateHouse Media reorganization/bankruptcy put to a vote

GateHouse Media will find out by next Thursday whether its bankruptcy and reorganization will take place as planned.

The company filed the following notice today with the Securities and Exchange Commission:

On September 20, 2013, GateHouse Media, Inc. and certain of its subsidiaries (collectively, “GateHouse”) commenced solicitation of votes to accept or reject a prepackaged plan of reorganization (the “Plan”) under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) from all holders of Outstanding Debt, as defined below (the “Solicitation”), as more fully described in the Plan and the disclosure statement for the Plan (the “Disclosure Statement”). Pension, trade and all other unsecured claims of GateHouse would not be impaired under the Plan and their votes are not being solicited.
The Solicitation will expire at 5:00 pm prevailing Eastern Time on September 26, 2013, unless extended. If (i) Lenders under the Amended and Restated Credit Agreement by and among certain affiliates of GateHouse, the Lenders from time to time party thereto and the administrative agent thereto, dated as of February 27, 2007 (as amended, supplemented or modified from time to time, the “Credit Agreement”) and (ii) holders of GateHouse’s obligations under certain interest rate swaps secured thereunder (collectively, the “Outstanding Debt”) sufficient to meet the requisite threshold of 67% in amount and a majority in number (each calculated without including any insider) necessary for acceptance of the Plan under the Bankruptcy Code vote to accept the Plan in the Solicitation, GateHouse intends to commence Chapter 11 cases and seek approval of the Disclosure Statement and confirmation of the Plan therein.
To date, holders of Outstanding Debt, including Newcastle Investment Corp. (an affiliate of GateHouse) representing approximately 80.3% in amount of the Outstanding Debt (including certain amounts still pending trade settlement) and the Administrative Agent under the Credit Agreement have signed a Support Agreement agreeing to support the restructuring contemplated by the Plan.
GateHouse believes that it will be a viable long-term provider of print, online and other digital products, including mobile applications, after the completion of the Chapter 11 restructuring. GateHouse has not yet commenced Chapter 11 cases.
Epiq Bankruptcy Solutions, LLC is the Voting Agent for the Plan. Holders of Outstanding Debt may request additional copies of the Disclosure Statement or a replacement ballot by contacting the Voting Agent by email at gatehouse@epiqsystems.com, by telephone at (646) 282-2500, or at the following address: GateHouse Media, Inc. Ballot Processing Center, c/o Epiq Bankruptcy Solutions, LLC, 757 Third Avenue, Third Floor, New York, New York 10017.
GateHouse is electing to furnish under Item 7.01 the information contained in the Disclosure Statement and the Plan. The Disclosure Statement and the Plan are set forth as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K.
GateHouse Media owns the Carthage Press, Neosho Daily News, and Pittsburg Morning Sun in this area.

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