01.25.2010 03:00 PM
Freedom Bankruptcy Moves Ahead
WILMINGTON, DEL.: The federal court handling the Freedom
Communications bankruptcy has approved the company’s reorganization plan.
Irvine, Calif.-based Freedom owns 90 print publications and eight TV stations.
The U.S. Bankruptcy Court for the District of Delaware in Wilmington approved
of Freedom’s disclosure statement last week, clearing the way for the media
company to solicit votes from creditors on its debt restructuring plan. A
hearing for final approval of the plan is scheduled for March 9. It has already
been approved by both groups representing secured and unsecured creditors. The
second group previously received court approval to submit their own plan after
one proffered by the company left them with around two cents on the dollar.
Under the plan approve by the court, Freedom’s secured debt would be reduce
from $770 million to $235 million, with all common stock owned by secured
creditors. Unsecured creditors would get $20 million versus the $5 million they
were previously offered.
Freedom filed for Chapter 11 protection Sept. 1, 2009.
More on Freedom:
December 4, 2009: “Court Allows Creditors
to Pursue Alternate Reorg Plan”
Freedom’s proposed plan would have given its secured lenders control of
nearly all of the reorganized company’s equity and $325 million in new notes.
When Freedom filed for Chapter 11 on Sept. 1, it submitted the plan to allow
J.P. Morgan Chase, SunTrust and Union Bank of California to take over the