Heartland Publications, LLC Receives Court Approval of All First Day Motions;
Motions Ensure All Publications Will Continue Without Interruption
Clinton, Conn. – Dec. 22, 2009 – Heartland Publications, LLC, which operates 50 paid-circulation newspapers and numerous free or controlled distribution products in nine states, today announced the Court approval of all of its "first day" motions. Heartland earlier this week announced that it had reached agreement with the majority of its first-lien lenders on a financial restructuring and filed voluntary petitions with the U.S. Bankruptcy Court for the District of Delaware to enter Chapter 11 protection.
"We are pleased with the prompt approval of these motions that ensure that all of our publications will continue to operate with no changes to advertising or circulation agreements or customer programs, and no changes to employee pay or benefits,” said Michael C. Bush, president and chief executive officer. "We are on track to successfully complete this expedited financial restructuring by early spring, reducing the company’s debt by more than half and creating a new capital structure,” continued Mr. Bush.
In addition to the continuation of customer and employee programs, the company also received Court approval to maintain existing cash management systems, access cash collateral, and pay certain key vendors for prepetition expenses, among other items.
As previously announced, Heartland has sufficient funds and positive cash flow to pay its ongoing expenses for the foreseeable future. The company intends to file its pre-negotiated Plan of Reorganization in the next week; the Plan calls for the full satisfaction of general unsecured claims.
From its headquarters in Clinton, Conn., the company operates 50 paid-circulation newspapers and numerous free or controlled distribution products in Georgia, Kentucky, North and South Carolina, Ohio, Oklahoma, Tennessee, Virginia and West Virginia. The company reaches more than 250,000 print subscribers each month and many others via interactive websites.
Additional information about the company’s restructuring may be found online at
http://chapter11.epiqsystems.com/heartlandpublications or by calling (866) 222-1116 or, internationally, (646) 282-2400. Information about the company and its publications can be found at
www.heartlandpublications.com.
Contact: The Abernathy MacGregor Group
Rivian Bell or Sydney Rosencranz
rlb@abmac.com; spr@abmac.com
(213) 630-6550; (888) 477-4319 (24/7)