Lee Haggles With Lenders to Avoid Bankruptcy: Corporate Finance
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Lee Enterprises Inc. is offering lenders higher rates and equity interests to refinance debt as the owner of the St. Louis Post-Dispatch seeks to avoid bankruptcy, according to four people familiar with the matter.
Creditors Monarch Alternative Capital LP and Goldman Sachs Group Inc. are leading talks with the Davenport, Iowa-based company and its adviser, Blackstone Group LP, said the people, who declined to be identified because the discussions are private. Lenders will also be asked to approve a pre-packaged bankruptcy, which the newspaper owner will pursue if an out-of-court restructuring doesn’t gain enough support, they said.