DENVER, Jan. 22 /PRNewswire/ -- Following plans that it announced last week, Affiliated Media, Inc. today filed a "prepackaged" plan of reorganization under chapter 11 of the bankruptcy code in United States Bankruptcy Court in Delaware. As previously disclosed, the plan allows the company to undergo a financial restructuring that sharply reduces debt, boosts cash flow and offers greater financial flexibility.
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.
Unlike other media company reorganizations, this one does not involve the newspaper operations or have any effect on employees or vendors of the newspapers. Only the holding company will restructure. There will be no change in management or control of MediaNews Group, which will continue to be led by William Dean Singleton, Chairman and Chief Executive Officer, and Joseph J. Lodovic IV, President.
Further, Affiliated's prepackaged plan won approval from its lenders, which means that the plan can bypass any need for negotiation or debate in court, and instead can win approval with a minimum of delay.
"We already have the support and approval of our lenders, so we expect our plan to proceed through this process swiftly and smoothly," said Mr. Singleton. "By aggressively facing the challenges of the newspaper business, we will continue to deliver high-quality journalism and will prepare our newspapers for a promising future."
SOURCE Affiliated Media, Inc.