Restructuring plan confirmed in Morris bankruptcy

The bankruptcy court confirmed Morris Publishing Group’s reorganization plan and approved the adequacy of its Disclosure Statement today; clearing the way for the Company to emerge from bankruptcy as soon as March 1, 2010.

Once it emerges from bankruptcy, Morris Publishing and its 13 daily newspapers will operate from a stronger financial position, having reduced its overall principal amount of indebtedness from approximately $418 million to approximately $107 million.

“We are delighted with the Court’s decision today,” said William S. Morris III, chairman of Morris Publishing. “This restructuring process has been lengthy and difficult, especially for our dedicated and loyal employees. I want to personally thank them, along with our advertisers, suppliers and readers, for their valued support during this period.

“Our commitment is to remain an agile and innovative market-driven newspaper company whose core mission is to gather and distribute news, support our advertisers and publish great newspapers and Web sites.”

Morris filed its Pre-Packaged Plan of Reorganization in January with the overwhelming support of its bondholders as well as its senior secured creditors. Upon emergence, the Company will exchange $100 million of new second lien secured notes due in 2014 for the cancellation of approximately $278.5 million of principal amount of outstanding senior subordinated unsecured notes due 2013 plus accrued and unpaid interest.

Concurrently with the exchange of bondholder debt, affiliated entities owned and controlled by the Morris family will make a capital contribution of approximately $85 million and a repayment of intercompany indebtedness of approximately $25 million, resulting in the cancellation of approximately $110 million of Morris Publishing’s senior secured debt.