Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
GateHouse Media Seeks Bankruptcy Protection
Author: Joel R. Glucksman
Date: September 19, 2013
Key Contacts
Back
GateHouse Media, Inc., a company that owns more than 400 community newspapers and websites, announced its plans to seek bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
The publisher maintains operations in 20 U.S. states and brought in annual revenue of $489 million in 2012. However, declining sales and large printing expenditures since the 2008 financial crisis caused GateHouse’s financial performance to run into the red. The company lost $14.1 million on revenue of $119.6 million for the second quarter ending on June 30, 2013.
In a recent filing with the Securities and Exchange Commission, the company said it had reached an agreement with its largest creditor – Newcastle Investment Corp. – to restructure its $1.2 billion in debt in a pre-packaged bankruptcy filing. Newcastle, which currently owns 52 percent of GateHouse’s debt, recently acquired 33 Dow Jones Local Media publications for $87 million, and plans to merge the two enterprises into a publicly-traded company named New Media. The newly-published Local Media Group puts out publications in seven states and generated $162 million in revenues last year.
In a presentation to investors, Newcastle said that New Media’s projected revenue from digital content coupled with its reduced printing costs will put it in a position to invest more than $1 billion into the purchase of additional newspapers and publications over a three-year period, The Associated Press reports. Both GateHouse Media and Local Media Group put out daily and weekly publications.
Creditors have already announced their support for the pre-packaged reorganization plan, which will give them the option to convert their positions into either equity or cash at a price of 40 cents on the dollar, Newcastle said in statement. Newcastle will maintain a 59 percent stake of the new company which will amount to roughly $230 million.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.