GateHouse Media, Owner Of Aledo Times Record, Files For Chapter 11 bankruptcy

times recordGateHouse Media Inc., owner of the Aledo Times Record and Galesburg Register Mail, has filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for Delaware, according to the Peoria Journal Star. GateHouse announced on September 11th that it had entered into an agreement with some secured lenders, including GateHouse affiliates, to restructure $1.2 billion of debt scheduled to come due in August 2014. According to Michael Reed, director and chief executive officer, the bankruptcy filing for prepackaged reorganization was a strategic decision.The prepackaged plan proposes a “balance-sheet restructuring” that will allow GateHouse to emerge from bankruptcy with less debt on its balance sheet, but with its business operations intact, Reed said. GateHouse, which operates in 330 markets across 21 states, is one of the largest publishers of locally based print and online media in the United States as measured by number of daily publications. The company said it intends to continue day-to-day operations under the jurisdiction of the bankruptcy court. According to Reed, GateHouse has sufficient cash to operate during the chapter 11 process and does not need debtor-in-possession financing.