GateHouse Files for Bankruptcy as Part of Fortress Plan
By Sophia Pearson & Tiffany Kary - Sep 27, 2013 7:46 AM ET
GateHouse Media Inc. (GHSE), the community newspaper publisher overseen by the co-chairman of Fortress Investment Group LLC (FIG), filed for bankruptcy after creditors approved a prepackaged plan of reorganization.
GateHouse, based in Fairport, New York, listed assets of $433.7 million and debt of $1.3 billion in a Chapter 11 petition filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
“We have complied with and are current with all our obligations,” Chief Executive Officer Michael Reed said in a statement today. “With the challenges facing our industry and the impending maturity of our secured debt next year, we needed to be proactive in exploring options to restructure our debt, recapitalize, and position ourselves for future growth.”
GateHouse’s 78 daily newspapers serve 10 million people in 21 states, according to the company’s website. It also owns 91 advertising-only “shoppers,” 235 weekly newspapers, 350 locally focused websites and six yellow-page directories.
GateHouse merged with a Fortress unit, FIF III Liberty Acquisitions LLC, in 2005, according to regulatory filings.
Other newspaper companies have entered bankruptcy as the shift among readers to online media has cut circulation and depleted classified advertising revenue. Tribune Co. (TRBAA), Journal Register Co., Philadelphia Newspapers LLC and Minneapolis Star Tribune all have sought court protection since 2008.
The case is GateHouse Media, 13-bk-12503, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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