LAWRENCEVILLE -- Triple Crown Media Inc., parent company of The Albany Herald, announced that the U.S. Bankruptcy Court for the District of Delaware has approved its "pre-arranged" Plan of Reorganization following the unanimous vote of the classes of claimants in favor of the plan. The company expects to consummate the plan promptly after formal entry of the court order confirming the plan.
Under the Plan of Reorganization, the company's approximately $35 million of second lien senior secured debt will be exchanged for $10 million of new second lien secured notes and 90 percent of the new common stock of the reorganized company, the majority of which will be held by funds managed by GoldenTree Asset Management LP. The company's approximately $27 million of existing convertible preferred stock will be exchanged for 5 percent of the new common stock of the reorganized company. The reorganized company will reserve 5 percent of the new common stock for issuance under management compensation programs. The company's existing common stock will be canceled.
"Our management team is delighted by this restructuring, and we look forward to working with GoldenTree to create value for all our constituents," said Michael J. Gebhart, executive vice president of Triple Crown Media. "They're an excellent match for our quality newspapers.
"We are overjoyed that our de-leveraged capital structure will now allow us to invest in and grow our business, to the benefit of our readers, our employees, our lenders and our new owners," Gebhart stated.
Under the Plan, the company's approximately $40 million of existing first lien senior secured debt will be assumed and reinstated by the reorganized company. All other creditors will be paid in full.
Information about the Plan and other court documents can be obtained at www.kccllc.net/triplecrown.
Triple Crown Media owns and operates six daily newspapers and one weekly newspaper in Georgia.