Lee Enterprises Newspaper Group Files for Bankruptcy Protection

Lee Enterprises Inc., which publishes 48 different daily newspapers, has filed for Chapter 11 bankruptcy protection in the effort to unload debt amid dwindling paper sales.

Lee Enterprises filed for bankruptcy in Delaware, listing their liabilities at $944.5 million with assets totaling $1.15 billion.

It was not an unexpected move, as the owners stated a couple of weeks ago they would be filing for bankruptcy. Lee enterprises filed for Chapter 11, which will allow them to reorganize their debts without affecting overall operations or its employees. They have already reached a settlement agreement with nearly all of their creditors and predicted they will emerge from bankruptcy within 60 days.  

This is an unusual bankruptcy filing in that Lee Enterprises will not shed any debt and will pay higher interest rates. Normally, a business or individual retains a bankruptcy attorney to eliminate as much of their debt as possible.

Their bankruptcy filing will give them more time to refinance $769.5 million of distressed loans. They will cede 13 percent ownership stake to three creditors, Goldman Sachs, Monarch Master Funding Ltd. and Franklin Templeton/ Mutual Quest Fund.

The needs of each business or person can vary. A bankruptcy lawyer can evaluate the finances of the person seeking debt protection in order to determine what filing is most appropriate. Bankruptcy attorneys know which filing, whether it is Chapter 11 or Chapter 13 or any other option, will benefit the indebted individual or company the most.