IRVINE, CALIF.: Freedom Communications filed its reorganization proposal today, the media company said. Freedom filed for Chapter 11 Sept. 1 in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
Freedom’s secured lenders will take over the company under a debto-in-possession agreement reached before the filing. Primary lenders included J.P. Morgan Chase, SunTrust Banks and Union Bank of California, which were collectively owed around $770 million out of Freedom’s total debt of $1 billion.
The court will have to approve Freedom’s disclosure statement before the company holds a vote on the reorg plan and seeks the court’s OK on it.
A group of Freedom’s unsecured creditors petitioned the court in mid-October to reject the company’s investment banker based on conflict of interest. The same group objected to a proposal to award Freedom executives $7 million in bonuses when they themselves were allotted just $5 million. The outcome of an Oct. 14 hearing on the subject was not yet posted in court proceedings posted online.
Freedom has eight TV stations and around 100 newspapers.
More on Freedom:
October 12, 2009: “Freedom Communications Creditors Lash Out”
Unsecured creditors for bankrupt Freedom Communications are raising objections with the Chapter 11 proceeding.
September 2, 2009: “Freedom Files for Chapter 11”
Freedom Communications has filed for Chapter 11 bankruptcy. Under deal terms, lenders will take over the company, which includes eight TV stations and around 100 newspapers.
August 31, 2009: “Freedom Communications Expected to File Chapter 11”
Freedom defaulted last fall, but reached agreements in April with senior credit facility lenders to waive certain requirements through the end of the year.
