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/ 03.11.2010 1:00PM
Court Approves Freedom’s Plan To Shed $445 Million in Debt
IRVINE, CALIF.: Freedom Communications won court approval for a
reorganization that will allow it to slash $445 million from its secured debt.
The U.S. Bankruptcy Court for the District of Delaware in Wilmington confirmed
Freedom’s reorg plan to reduce its debt and be taken over by lenders
represented by J.P. Morgan Chase Bank.
Freedom, which owns eight TV stations and around 90 print publications, filed
for bankruptcy last September with $1 billion in debt. J.P. Morgan Chase,
SunTrust and Union Bank of California held around $770 million of the total.
The three lenders were named to take over Freedom in its initial reorg
proposal, but unsecured creditors in line to get just $5 million for $300
million in claims protested. Freedom came back with a revised plan that won
creditor approval in January. The final hearing on the plan came Tuesday.
Freedom said, “the company is currently working to clear remaining plan items
to emerge from Chapter 11 by the end of the month. The plan is supported by the
steering committee, comprised of the company’s secured lenders, and the official
committee, comprised of unsecured creditors. The plan was approved by a
majority of the company’s voting creditors. The plan will eliminate $450
million of the company’s debts, providing the company with the flexibility and
financial strength needed to serve its stakeholders.”
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