Freedom newspapers emerge from bankruptcy

A federal judge Tuesday approved Freedom Communications Inc.’s reorganization plan, giving a green light for the company to emerge from bankruptcy by the end of this month.

Freedom owns  33 newspapers includincg the Orange County Register,  eight television stations and other related companies.

The court action gets the Irvine-based media company and parent of the Orange County Register out from under 58 percent of its debt – from $775 million to $325 million. The company’s unsecured creditors will share in $32.2 million compared with the $5 million Freedom originally offered.

“I’m a little relieved that it’s all done,’’ said Freedom Chief Financial Officer Mark McEachen, who attended the less than 30-minute hearing. “Now we’re on to the business of running the business so we can get this distraction behind us.’’

Building a prosperous future for Freedom Communications means concentrating on providing relevant news and information to people in the way they want to receive it, the company’s chief financial officer said on Tuesday.

“If we can figure those things out we can make money on it,’’ McEachen said in an interview with the Orange County Register.  McEachen and interim CEO Burl Osborne both said that emerging from bankruptcy will be a new chapter for the Irvine-based company.

“There will be no dictation – at least with the current management – on positions to be taken by the editorial staff,’’ McEachen said. “They will be free to edit, comment and cover local events as they see fit, always remembering that we have to be relevant to our readers and advertisers.”

The company’s top two executives also said that they will be looking to expand, not to contract, Freedom.

“We’re looking at all opportunities,” Freedom Interim CEO Burl Osborne Osborne said.
“It’s clear there are opportunities for improvement in newspapers around the country, including Southern California.”

Osborne said the bankruptcy “will give the company a new balance sheet, a fresh start, if you will.”

The company’s plan calls for it to more than double its pretax earnings to $98 million within four years. Newspaper analysts predicted that the new investors/owners of the company are likely to hold on to it for a minimum of two years and as much as six or seven as they wait for the market for media concerns to improve.

See Freedom’s leaders bullish on future

See Judge approves Freedom bankruptcy plan