San Diego Bankruptcy Attorney comments on last week’s bankruptcy hearing for Orange County Register parent company.
San Diego Bankruptcy Attorney comments on last week’s bankruptcy hearing for Orange County Register parent company.
Last week a bankruptcy court judge in Delaware overseeing the Chapter 11 bankruptcy filing of Freedom Communications Holdings Inc. declined to issue a ruling on the contested confidentiality and documents that are part of the bankruptcy case. Freedom Communications Holdings is the parent company of the Orange County Register, and several other newspapers and television stations. The company filed for bankruptcy protection in September citing steep drops in advertising revenue and debts of more than $1 billion.
The company filed a prepackaged bankruptcy agreed to in advance with a majority of the company’s lenders that will forgive most of the $770 million in bank debt in exchange for giving control of the company to the lenders.
The disagreement between Freedom Communications Holdings and its creditors, which includes the federal Pension Benefit Guaranty Corporation, centers on the financial documents that the lenders are requesting. The company has asked all of the creditors to sign a confidentiality agreement before receiving the information, and the PBGC is contesting the agreement because it believes it will inhibit the agency’s ability to report to the Congress and the Executive Branch.
If the issue is not resolved, the PBGC, a potential $100 million claimant in the case, may be removed from the creditor’s committee to allow the case to go forward. The judge has scheduled another hearing on October 14 in the case.
Hearing held on Freedom bankruptcy documents, KMPH.com, October 8, 2009
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