As it announced a week ago, Lee Enterprises -- owner of the Quad City Times and Muscatine Journal -- filed Monday (12/12) for voluntary Chapter 11 bankruptcy protection in order to complete the refinancing of its nearly $1 billion debt.
The company said last week it would file the "prepackaged" bankruptcy after failing to obtain the consent of 6 percent of its lenders to the refinancing deal.
Under the bankruptcy plan and refinancing agreement, the company's debt, which was to mature in April 2012, would be extended out until 2015 and 2017 to give the firm additional time to pay down the loans.
As part of the refinance package, Lee would give lenders 13 percent (6.744 million shares) of its common stock. Lenders who would get the ownership share and a boost in interest on the refinanced debt include Goldman Sachs Lending Partners LLC, Franklin Templeton/Mutual Quest Fund and Monarch Master Funding Ltd.
CLICK HERE for Reuters News Service article on the bankruptcy filing.
CLICK HERE for the company's annual report (10K) filed Monday with the Security and Exchange Commission (SEC).
