GateHouse Media Inc., owner of The White Hall Journal, the Stuttgart Daily Leader and a dozen other Arkansas publications, has filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for Delaware, the Patriot-Ledger of Quincy. Mass. reported.
The Patriot-Ledger also is owned by GateHouse.
GateHouse announced on Sept. 11 that it had entered into an agreement with some secured lenders, including GateHouse affiliates, to restructure $1.2 billion of debt scheduled to come due in August 2014, the Massachutsetts newspaper reported.
The Patriot Ledger quoted Michael Reed, director and chief executive officer, as saying the bankruptcy filing for prepackaged reorganization was a strategic decision.
“We have complied with and are current with all of our obligations,” Reed said. “But with the challenges facing our industry and the impending maturity of our secured debt next year, we needed to be proactive in exploring options to restructure our debt, recapitalize and position ourselves for future growth.”
Independent reporting for Pine Bluff & Jefferson County since 1879.
The prepackaged plan proposes a “balance-sheet restructuring” that will allow GateHouse to emerge from bankruptcy with less debt on its balance sheet, but with its business operations intact, Reed said.
GateHouse, which operates in 330 markets across 21 states, is one of the largest publishers of locally based print and online media in the United States as measured by number of daily publications, the Patriot Ledger reported.
The company said it intends to continue day-to-day operations under the jurisdiction of the bankruptcy court.