Another week of forbearance for Record publisher

Ever since Morris Publishing announced on January 28, 2009 the hiring of Lazard Freres & Co. LLC as financial advisor and Neal, Gerber & Eisenberg, LLP as legal counsel, the future of the company that publishes the St. Augustine Record has been in doubt.

William S. Morris III, Chairman of Morris Publishing, stated, “These firms will assist us in evaluating our strategic options regarding Morris Publishing’s existing capital structure.”

Beginning August 14, 2009, and continuing each subsequent Friday on August 21, 2009, August 28, 2009, September 4, 2009, September 11, 2009 and again this Friday September 18, 2009, Morris Publishing has been operating on a week-to-week basis with it’s creditors — renegotiating an extension until the following Friday to make two overdue semi-annual interest payments of $9.7 million each.

The money which is owed to a group of banks and investors on Morris Publishing senior subordinated notes was originally due to be paid $9.7 million on February 1, 2009 and $9.7 million on August 3, 2009.

Once again on this Friday, Morris Publishing reports that their senior bank group agreed to extend until September 25, 2009 the waiver of the cross defaults arising from the overdue interest payments on the senior subordinated notes.

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 as well, according to an announcement received by Historic City News from Craig Mitchell, Senior Vice President of Finance with Morris Communications Company, LLC.

Photo credit: Historic City News photographer Kerry McGuire