Homer Alaska - Business

Morris Publishing Group, LLC, the parent company of the Homer News, announced Tuesday that it has emerged from bankruptcy after completing the necessary steps to consummate its prepackaged plan of reorganization.

Consistent with the plan confirmed by the U.S. Bankruptcy Court on Feb. 17, approximately $278.5 million principal amount of senior subordinated notes plus accrued and unpaid interest has been canceled in exchange for $100 million of new secured notes due in 2014.

Concurrent with the exchange of bondholder debt, the Morris family, through its affiliated entities, made a capital contribution to Morris Publishing of approximately $85 million and repaid approximately $25 million in intercompany debt due Morris Publishing. In addition, Morris Publishing repaid from cash on hand the entire $19.7 million principal amount of Tranche A senior secured debt plus accrued interest.

"Yesterday, we completed our formal debt restructuring, with Morris Publishing emerging with a significantly de-leveraged balance sheet," said William S. Morris III, chairman of Morris Publishing, in a prepared statement issued Tuesday. "I am grateful for the support of all of our lenders, bondholders and professionals who have worked cooperatively, constructively and tirelessly to arrive at this mutual resolution.

"In addition, I want to thank all of our employees, suppliers, advertisers and readers for their patience and dedication during the restructuring process. We can now focus without distraction on our ongoing efforts to improve all facets of our core newspaper business."

Morris Publishing Group is a privately held media company based in Augusta, Ga., that owns and operates 13 daily newspapers as well as non-daily newspapers, city magazines and free community publications in the Southeast, Midwest, Southwest and Alaska. In addition to the Homer News, the company's holdings in Alaska include the Peninsula Clarion and the Juneau Empire.