Court OKs MediaNews parent’s Chapter 11 plan

Bankruptcy

A U.S. Bankruptcy Court judge Thursday approved the reorganization plan of the holding company of Denver’s MediaNews Group Inc., publisher of The Denver Post, the company said.

Confirmation of the “pre-packaged” plan by Judge Kevin Carey of U.S. Bankruptcy Court in Delaware will allow Affiliated Media Inc., parent of MediaNews, to emerge from Chapter 11 protection.

“We knew we had a good plan going in, and it had been approved by the lenders before it was filed,” William Dean Singleton, chairman and CEO of MediaNews Group, said in a statement. “We are pleased that it won confirmation, and that our company is now well-positioned for the changing days ahead.”

Affiliated filed under Chapter 11 on Jan. 22 and submitted a plan already approved by major creditors, allowing it to greatly reduce its debt from $930 million to $165 million in debt in exchange for equity in the company, while leaving Singleton and President Joseph “Jody” Lodovic in control of the Affiliated/MediaNews management.

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