NEW YORK, March 10, 2020 /PRNewswire/ -- McClatchy (OTC-MNIQQ) continued its momentum in its Chapter 11 reorganization as Hon. Michael E. Wiles of the U.S. Bankruptcy Court for the Southern District of New York has granted final approval of key motions at its "Second Day" hearing on March 9, 2020. These matters were uncontested, and the entry of these orders will authorize, among other things, the Company's funding of customer and subscriber programs and payment of employees, critical vendors, utilities, and taxes in the ordinary course.
"At this important moment for essential local news and information, we are gratified by time and attention of the Court to our Chapter 11 case. We will continue to do our best to support our commitment to our employees, partners, vendors, and most importantly, our readers,'' said McClatchy President and CEO Craig Forman. "Credible, independent local journalism is essential to keeping the public informed and engaged, and we are seeing progress with each step we take."
Last week McClatchy began mediation with the Official Committee of Unsecured Creditors (including the Pension Benefit Guaranty Corporation) and Chatham Asset Management. An associated discovery process under Rule 2004 of the Federal Rules of Bankruptcy Procedure is ongoing. It is the Company's hope that this mediation will result in a timely resolution of outstanding issues, so it can emerge from Chapter 11 protection with a more appropriate capital structure and better able to accelerate its ongoing digital transformation.
More information about McClatchy's restructuring can be found by visiting the Company's dedicated site at https://McClatchyTransformation.com. In addition, legal filings and other information related to the Chapter 11 case are available at www.kccllc.net/McClatchy, or by calling KCC, the Company's noticing and claims agent, at +1 (866) 810-6898.
McClatchy operates 30 media companies in 14 states, providing each of its communities with strong independent local journalism in the public interest and advertising services in a wide array of digital and print formats. McClatchy publishes iconic local brands including the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the Fort Worth Star-Telegram. McClatchy is headquartered in Sacramento, Calif. #ReadLocal
Statements in this press release regarding results of operations, cash flow or financial condition, future financial and operating results, including our restructuring efforts with PBGC, our lenders, and our bondholders, and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the effects of the Bankruptcy Court rulings in the Chapter 11 proceedings and the outcome of the proceedings in general; the length of time the Company will operate in the Chapter 11 proceedings; our restructuring efforts rely on coming to terms with multiple parties who may have conflicting interests; the potential adverse effects of Chapter 11 proceedings on the Company's liquidity or results of operations or its ability to pursue its business strategies; increased levels of employee attrition during the Chapter 11 proceedings; we may experience diminished revenues from advertising; we may not achieve our expense reduction targets including efforts related to legacy expense initiatives or may do harm to our operations in attempting to achieve such targets; our operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; increases in the cost of newsprint; litigation or any potential litigation; geo-political uncertainties including the risk of war; changes in printing and distribution costs from anticipated levels, including changes in postal rates or agreements; changes in interest rates; increased consolidation among major retailers in our markets or other events depressing the level of advertising; competitive action by other companies; and other factors, many of which are beyond our control; as well as the other risks listed in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 30, 2018. While it is not the Company's preferred outcome, in the event that the various stakeholders cannot agree to a timely and viable plan of reorganization, the Company would likely be required to consider other alternatives, including a competitive marketing process in order to obtain the maximum recovery for all of its stakeholders. These forward-looking statements speak as of the time made and, except as required by law, we disclaim any intention and assume no obligation to update the forward-looking information contained in this release.
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