Court Approves Freedom Communications Reorganization Plan
Irvine, CA, March 9, 2010 – Freedom Communications, a national privately owned media company operating print publications, broadcast television stations and interactive businesses, announced today that the U.S. Bankruptcy Court has confirmed its Plan of Reorganization. The Company is working to clear the remaining Plan items with a target to emerge from Chapter 11 by the end of March.
The Plan, which was supported by the Steering Committee of the Company’s secured lenders and the Official Committee of Unsecured Creditors, and approved by an overwhelming majority of its voting creditors, eliminates approximately $450 million of debt from Freedom’s balance sheet, giving the Company the flexibility and financial strength it needs to best serve all of its stakeholders.
Upon emergence from Chapter 11, the Company will receive a $25 million revolving credit facility from General Electric Capital Corporation, as agent. This facility will ensure that the Company has adequate back-up liquidity upon emergence to meet its working capital needs.
“Navigating through Chapter 11 as rapidly as we have is a remarkable achievement, testifying to the hard work of all involved,” said Chief Executive Officer 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 and meeting the challenges of the new media environment.”
In a separate but related action today, the Court also approved the Company’s sale of its Phoenix-area operations to 1013 Communications, LLC, an affiliate of Thirteenth Street Media. The sale is expected to close by the end of March, subject to satisfaction of the closing conditions.
The Chapter 11 petitions were filed in the U.S. Bankruptcy Court for the District of Delaware, in Wilmington. The case number is 09-13046. The Company has also established a restructuring information line at 800-299-1960. Additional information regarding the filings, including the Company’s plan of reorganization and disclosure statement, can also be found at www.loganandco.com.
About Freedom Communications
Freedom Communications, headquartered in Irvine, Calif., is a national privately owned information and entertainment company of print publications, broadcast television stations and interactive businesses. The company’s print portfolio includes approximately 90 daily and weekly publications, including approximately 30 daily newspapers, plus ancillary magazines and other specialty publications. The broadcast company’s stations – five CBS, two ABC network affiliates and one CW affiliate – reach more than 3 million households across the country. The Company’s news, information and entertainment websites complement its print and broadcast properties.