GateHouse Media, which owns the Hope Star, Nevada County Picayune and Arkadelphia Siftings-Herald in southwest Arkansas Friday voluntarily filed Chapter 11 bankruptcy in Delaware. The company also filed and requested confirmation of a joint prepackaged plan of reorganization.
Michael Reed, director and chief executive officer, said the filing was a strategic decision to facilitate restructuring, and not a reflection of any operational difficulties on the part of GateHouse. Reed said the company has complied with and are current with their obligations, but wanted to be proactive in exploring options to restructure debt, recapitalize and position for future growth.
“The prepackaged plan proposes a “balance-sheet restructuring” by which GateHouse will emerge from bankruptcy with much less debt on its balance sheet, but with its business operations completely intact. Upon emergence, we will be under common ownership with Local Media Group, a company with a strong community media presence and performance that operates eight daily community papers and thirteen weeklies. Joining with Local Media Group will be an important step in growing our business and it will contribute to our future success as the pre-eminent source for locally focused content, covering and serving our subscribers, advertisers and customers through print, online and other digital products, including mobile applications,” Reed said.
In Arkansas GateHouse also has papers in White Hall, Newport and Heber Springs. Nationally the company operates in 330 markets in 21 states