Sacramento, California-based McClatchy Co., owner of the Lexington Herald-Leader, filed for bankruptcy protection on Thursday. Under the Chapter 11 filing, the company and its 30 local newsrooms across 14 states will operate as usual as it pursues approval for a restructuring plan with its secured lenders, bondholders, and the Pension Benefit Guaranty Corporation (PBGC).
"McClatchy's Plan provides a resolution to legacy debt and pension obligations while maximizing outcomes for customers and other stakeholders," said Craig Forman, McClatchy president and chief executive officer, in a release on the filing. "When local media suffers in the face of industry challenges, communities suffer: polarization grows, civic connections fray and borrowing costs rise for local governments. We are moving with speed and focus to benefit all our stakeholders and our communities."
"In this important moment for independent local journalism in the public interest, a reorganized capital structure will enable McClatchy to continue to pursue our strategy of digital transformation and continue to produce strong local journalism essential to the communities we serve. While there is still more work to be done, we are pleased with the progress to date, and are appreciative of our ongoing dialog with our lenders and the PBGC. Moreover, we expect there will be no adverse impact on qualified pension benefits for substantially all of the plan's participants and beneficiaries," Forman said.