Monday, September 30, 2013

GateHouse Media files bankruptcy, plans merger with chain recently bought by its owner

One of the larger owners of rural newspapers, GateHouse Media, is filing bankruptcy and planning merger with a chain of newspapers News Corp. recently sold to GateHouse's owner.

GateHouse announced Friday it has filed for reorganization under Chapter 11 of the Bankruptcy Code and “requested confirmation of a joint prepackaged plan of reorganization.” It listed assets of $433.7 million and debt of $1.3 billion, Sophia Pearson and Tiffany Kary of Bloomberg BusinessWeek report.

When it leaves bankruptcy, GateHouse plans to pair with Local Media Group, the group that News Corp. sold earlier this month to Fortress Investment Group, which owns GateHouse.

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