Freedom, creditors reach bankruptcy deal

 

John Dunphy (in a facebook note) calls attention to this news in the Orange County Register

WILMINGTON – A federal bankruptcy court judge  today approved a deal between Freedom Communications,  its  unsecured creditors and its lenders that could allow the owner of The Orange County Register to emerge from bankruptcy by  the end of March.

The arduously negotiated deal provides for about eight times more money for the company’s unsecured creditors – including a group of longtime current and former employees – than the company had originally proposed.

“This is a great day – for our employees, for our customers,’’ said  Chief Financial Officer Mark McEachen, who was at the hearing where federal Bankruptcy Court Judge Brendan Shannon approved the Irvine-based company’s disclosure statement and set March 9 as the date for confirmation of the company’s bankruptcy plan.

Under the new plan,  Freedom’s secured debt would be reduced from $770 million to $325 million.
Company officials will now send out ballots to Freedom’s creditors and if they approve the plan, it will go before Shannon on March 9.  The lenders, who will take over the company, will name a new board to take over when the company emerges from bankruptcy. The names of the new board members are expected to be released sometime before March 9.