Craig Mitchell, Senior Vice President of Finance for Morris Communications Company, LLC, reported on July 31, 2009 that it’s newspaper subsidiary, Morris Publishing Group, LLC, obtained an extension of the forbearance period on it’s overdue interest payments to creditors.
Morris Publishing which is based in Augusta, Georgia, owns and operates 13 daily newspapers as well as nondaily newspapers, city magazines and free community publications in the Southeast, Midwest, Southwest and Alaska — including The Florida Times-Union and The St. Augustine Record.
According to the announcement, Morris has obtained an extension until August 14, 2009 to make a $9.7 million interest payment on its senior subordinated notes which was originally due Feb. 1, 2009.
Additionally, the forbearance agreement incorporates Morris Publishing’s anticipated failure to make the $9.7 million interest payment that was due on August 3, 2009.
The holders of more than 80 percent of the outstanding amount of senior subordinated notes have agreed to extend the forbearance period for these payments.
Morris Publishing’s senior bank group also agreed to extend until August 14, 2009 the waiver of the cross default arising from any overdue interest payments on the senior subordinated notes. In addition, the bank’s revolving credit commitment was permanently reduced to $60 million.