Star-Tribune Plans To Emerge From Bankruptcy By Fall; Publisher Harte To Step Down

Star Trib

The Minneapolis Star-Tribune, which filed for bankruptcy in January, expects to exit from Chapter 11 by the fall, the paper reported (via Reuters). Creditors who hold about $384 million of the Star-Trib’s secured debt, as well as $96 million in unsecured obligations, have approved the publisher’s plan. Under the Star-Trib’s proposal, the company would come out of Chapter 11 with $100 million in debt and would be worth $118-$144 million, which includes the value of its real estate. In addition, current publisher and chairman Chris Harte, whose family is one of the owners of the paper, will leave the company before it completes the bankruptcy process. More after the jump

The Star-Trib filed for bankruptcy after missing several debt payments over the past year.The paper was bought a little over two years ago from The McClatchy Company (NYSE: MNI) by Avista Capital Partners for $530 million. As a result of the company’s reorg plan, the report noted that Avista Capital, which is still a majority stakeholder, and the Chris Harte Family Trust, would no longer own the company and walk away empty-handed.

Photo Credit: Stephen Cummings

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