Florida Publishing Group Files for Ch. 11 Bankruptcy

Morris Publishing Group, publisher of The Florida Times-Union and over a dozen other dailies, formally filed for bankruptcy last Tuesday morning.

Morris Publishing filed a petition for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Georgia in Augusta. Under the prepackaged plan, Morris Publishing will reduce its overall indebtedness from approximately $415 million to $126.5 million. The prepackaged restructuring plan, agreed to by approximately 93% of its bondholders, will exchange $278.5 million of its existing debt that would be due in 2013 for $100 million in new debt that matures in 2014.

Morris said the $100 million in new notes will bear interest of at least 10%, but some could be as high as 15%. Some of the interest could be paid with additional securities rather than in cash.

"This filing is the final step in the financial restructuring we announced last fall," said Morris Publishing Group Chairman William S. "We are pleased that so many of our noteholders agreed to support this move to get Morris Publishing on more solid financial ground."

Morris and its debtors own and operate 13 daily newspapers and over a dozen nondaily newspapers and other publications nationwide. Morris said operations at their papers, which had a total circulation of 450,000, will continue despite the filing.

According to a filing in bankruptcy court, when the petition was filed Morris’s newspapers had about 1,847 full-time employees and 335 part-time employees. Morris also said that all obligations to employees and vendors will be met in full.