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Judge approves MediaNews bankruptcy plan

Lodovic and Singleton

The AP is reporting that a federal bankruptcy judge in Delaware today approved the bankruptcy plan of the parent company of the Mercury News, Contra Costa Times, Oakland Tribune, San Mateo County Times and other MediaNews Group papers.

The Fitz & Jen column on the E&P site notes:

Before today’s approval, the company filed a declaration by CFO Ronald Mayo in which he said that “Any delay in emergence from Chapter 11 will damage the debtor’s business, to the detriment of all parties of interest,” according to a report in the Denver Business Journal.

And here’s a blast from the past — A MediaNews press release nine months ago in which it flatly denied a report was going to file for bankruptcy.

    A media report on Wednesday, citing rumors from unnamed sources, reports that MediaNews Group has proposed a refinancing plan to its bank lenders that would cause a change in control of the company and possibly involve a bankruptcy filing. 
    The story is inaccurate in almost all respects. As previously reported, MNG is in discussions with its bank lenders to restructure its balance sheet, including an exchange of some of its bank debt for equity in the company. 
    Proposals to the company’s lenders do not include a change in control of the company, nor do they include proposals for any bankruptcy filings, as the rumors suggest. MediaNews Group remains in compliance with its bank agreements while refinancing discussions continue.

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