From NetNewsCheck

GateHouse Media Inc. and certain of its subsidiaries have emerged from prepackaged chapter 11 bankruptcy proceedings in the United States Bankruptcy Court for the District of Delaware with a substantially de-levered balance sheet, the company announced Tuesday.

The Fairport, N.Y.-based local media company, which operates 78 daily publications across the country, commenced chapter 11 cases on Sept. 27, 2013, with the unanimous support of its existing lenders to implement a comprehensive restructuring of approximately $1.2 billion of debt that was scheduled to come due in August 2014. Upon its emergence from chapter 11, GateHouse is now owned by New Media Investment Group Inc., and is under common ownership with Local Media Group Inc., which operates eight daily community newspapers and 13 weeklies, according to GateHouse.

The bankruptcy filing was a strategic decision to facilitate this restructuring, according to Michael Reed, the company’s director and CEO, and GateHouse was able to continue operations while in chapter 11 without disruption.

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