On March 1, 2010, Morris Publishing Group, LLC and its subsidiaries ("Morris Publishing"), as Debtors, completed the necessary steps (as described below) to consummate the Debtors' Prepackaged Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code (the Plan) which was confirmed by the United States Bankruptcy Court for the Southern District of Georgia, Augusta Division on February 17, 2009.
Pursuant to the Plan, the claims of the holders of Morris Publishing’s 7% Senior Subordinated Notes Due 2013, in an aggregate principal amount of approximately $278.5 million plus accrued and unpaid interest, (the "Original Notes") were cancelled in exchange for the issuance of $100 million in aggregate principal amount of new secured notes due in 2014.
Concurrent with the cancellation of the Original Notes, the Morris family, through its affliated entities, made a capital contribution to Morris Publishing of approximately $85 million and repaid approximately $25 million of intercompany indebtedness to Morris Publishing, resulting in the cancellation of approximately $110 million in aggregate principal amount of the Tranche C senior secured debt outstanding under the Amended and Restated Credit Agreement, dated as of October 15, 2009 (the "Credit Agreement"). All paid-in-kind ("PIK") interest accrued on the Tranche C debt was cancelled.
In addition, Morris Publishing repaid from cash on hand the entire $19.7 million principal amount of Tranche A senior secured debt plus accrued interest.
On March 2, 2010, Morris Publishing issued a press release relating to the foregoing, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.