MediaNews Group disputes article hinting at possible bankruptcy filing
A blog earlier today detailed a Debtwire article about MediaNews Group, a Denver-based firm that owns dozens of newspapers around the country, including the Denver Post. That piece included information about a series of outstanding loans, as well as the following passage: "MediaNews has scheduled a 1 July lender call to provide an update on the progress of the negotiations, the second source familiar said. The company is expected to implement its restructuring through a pre-arranged or pre-packaged bankruptcy filing, said the first source, a lender and a sellside analyst." Moments ago, however, MediaNews sent out a press release taking issue with Debtwire's reportage. It reads:
A media report on Wednesday, citing rumors from unnamed sources, reports that MediaNews Group has proposed a refinancing plan to its bank lenders that would cause a change in control of the company and possibly involve a bankruptcy filing.
The story is inaccurate in almost all respects. As previously reported, MNG is in discussions with its bank lenders to restructure its balance sheet, including an exchange of some of its bank debt for equity in the company.
Proposals to the company's lenders do not include a change in control of the company, nor do they include proposals for any bankruptcy filings, as the rumors suggest.
MediaNews Group remains in compliance with its bank agreements while refinancing discussions continue.
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