The provisions of the deal had to be tough to swallow: As Bloomberg synopsizes it, "Secured lenders who are owed about $590 million will exchange their debt for about 89 percent of the reorganized company's equity, a new $150 million term loan and letters of credit totaling about $13.9 million." But Singleton remains in charge, and he's got what appears to be a workable approach moving forward. Look below to read Affiliated's take on the development:
Affiliated Media, Inc. Emerges from Chapter 11
DENVER, March 19 /PRNewswire/ -- Affiliated Media, Inc. today announced that it has successfully emerged from chapter 11 protection.
Affiliated Media, Inc. is the holding company for the MediaNews Group family of newspapers, the nation's second-largest newspaper publisher by circulation and owner of 54 daily newspapers, over 100 non-daily newspapers, as well as websites, television and radio broadcasters that serve markets in 12 states.
As previously reported, the Hon. Kevin J. Carey of U.S. Bankruptcy Court for the District of Delaware confirmed the company's plan for reorganization on March 4, 2010, less than six weeks after the company filed for protection, on Jan. 22, 2010. Prior to filing, the company had already reached agreement with its lenders on terms of the plan, which reduces the company's debt from approximately $930 million to approximately $165 million and involves no management change or change of control of the company.