GateHouse Media Inc. (GHSE), the community newspaper publisher overseen by the co-chairman of Fortress Investment Group LLC, said it will seek votes today on a plan to reorganize in bankruptcy.
GateHouse, based in Fairport, New York, has proposed a prepackaged plan that will allow it to enter Chapter 11 bankruptcy with creditor support if more than 67 percent of debt holders accept, the company said in a regulatory filing today.
The publisher has said it plans to file for bankruptcy as part of a move to merge its media assets with those recently bought by Newcastle Investment Corp. (NCT) The reorganization, which has support from most creditors, hinges on the combination of GateHouse with assets of Dow Jones Local Media Group, which Newcastle bought from News Corp. in this month for $87 million.
“GateHouse believes that it will be a viable long-term provider of print, online and other digital products, including mobile applications, after the completion of the Chapter 11 restructuring,” the company said in today’s filing. It set a deadline for voting of 5 p.m. New York time on Sept. 26.
GateHouse’s 78 daily newspapers serve 10 million people in 21 states, according to the company’s website. It also owns 91 advertising-only “shoppers,” 235 weeklies, 350 locally focused websites and six yellow-page directories.
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