Newspaper publisher, Lee Enterprises gets approval to exit bankruptcy

Lee Enterprises Inc. got final approval from a bankruptcy judge on Monday to exit Chapter 11 bankruptcy, according to CBS News.

Lee Enterprises Inc. publishes over 50 newspapers nationwide and filed for Chapter 11 on December 12^th last year to force creditors to agree to a restructuring plan. The publisher had amassed debts totaling close to $1 billion.

The plan extends the due dates on their indebtedness to August 2015 and April 2017. According to CEO Mark Junck this plan gives the publisher, “a four-year runway to continue improving our balance sheet.”

This agreement covers more than $127 million in debt Lee took on when it purchased Pulitzer Inc.

The initial refinancing agreement satisfied 97 percent of Lee’s creditors but they had to appear in court because some provisions required unanimous approval.

Bankruptcy may not be the route a troubled business wants to take but in some situations it is unavoidable. It may be impossible to reduce debt without the assistance of a bankruptcy attorney.

A business that finds itself deeply in debt has a number of bankruptcy options. There are filings that call for the company to sell off its assets to satisfy creditors. A bankruptcy lawyer may recommend Chapter 11 to a business that wishes to continue operating while reducing their debt liabilities.

When you are contemplating bankruptcy you need expert advice and a bankruptcy attorney can inform you which structure will be best.