From the Democrat and Chronicle
Perinton-based media chain GateHouse Media Inc. apparently is readying for bankruptcy.
In a U.S. Securities and Exchange Commission filing Wednesday,Newcastle Investment Corp. said it had worked out an agreement with various other GateHouse creditors for a potential restructuring as part of a prepackaged Chapter 11 bankruptcy reorganization plan. Newcastle owns 52 percent of GateHouse’s $1.2 billion in debt.
Under the potential restructuring plan, creditors could exchange their GateHouse debt for cash or GateHouse stock at 40 cents on the dollar.
GateHouse did not respond to a message seeking comment Wednesday. The company’s stock tumbled Wednesday on Wall Street, with its shares closing out the day at 2½ cents, down 47 percent.
GateHouse, like numerous media companies, has struggled in recent years with declining revenues, particularly from sliding print advertising, even as its digital business picks up. The company, in its 2012 fiscal year, had revenues of $491 million. Its last profitable quarter came in fiscal year 2011.