In a filing this morning with the Securities and Exchange Commission, GateHouse Media, owner of the Carthage Press, Neosho Daily News, Pittsburg Morning Sun, and the Big Nickel, in the Joplin area, said its Chapter 11 bankruptcy, which was filed this morning in U. S. Bankruptcy Court in Delaware, will not affect its day-to-day business.
The filing is reprinted below:
On September 27, 2013, the Company and certain of its subsidiaries (collectively with the Company, the “Debtors”) commenced voluntary chapter 11 proceedings (the “Chapter 11 Cases”) under the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).
Concurrently with the commencement of the Chapter 11 Cases, the Debtors have filed and requested confirmation of a prepackaged plan of reorganization (the “Plan”).
The Debtors solicited votes of holders of claims under the 2007 Credit Agreement (as defined below) and certain interest rate swaps secured thereunder (collectively, the “Secured Debt), including certain affiliates of the Debtors. The Plan was accepted by the only impaired class of creditors entitled to vote on the Plan. Specifically, 79 out of the 80 holders of Secured Debt entitled to vote holding an aggregate amount of $1,199,317,153 (representing 99.99% of the total Secured Debt) voted to accept the Plan. No creditors voted to reject the Plan.
Pension, trade and all other unsecured claims of the Company would not be impaired under the Plan and their votes were not solicited. The Company’s common stock would be canceled under the Plan.
Pursuant to a support agreement executed by the administrative agent and lenders constituting the “Required Lenders” under the 2007 Credit Agreement, the parties thereto have agreed that the commencement of the Chapter 11 Cases in furtherance of the Debtors’ obligations under the support agreement shall not be deemed to constitute a default under the 2007 Credit Agreement. Absent such agreement, the commencement of the Chapter 11 Cases would have constituted an event of default under the Debtors’ credit agreement, dated as of February 27, 2007 (as amended, supplemented or modified from time to time, the “2007 Credit Agreement”), by and among certain affiliates of GateHouse, the Lenders from time to time party thereto and the administrative agent thereto.
The Debtors intend to continue to operate their businesses without interruption as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Pursuant to the Plan, the Debtors do not need, nor intend to obtain debtor-in-possession (DIP) financing during the Chapter 11 Cases.
Houlihan Lokey Capital Inc. is acting as financial advisor to the Company, and Young Conaway Stargatt & Taylor, LLP is acting as its legal counsel. Additional information is available at the Debtors’ restructuring website athttp://dm.epiq11.com/gatehousemedia.
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