McClatchy Files For Bankruptcy

(RTTNews) - McClatchy Co. (MNI) said it filed its voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York.

The Chapter 11 filing provides immediate protection to the Company, which will continue to operate in the ordinary course of business as it pursues approval of the restructuring plan with its secured lenders, bondholders, and the Pension Benefit Guaranty Corporation, the company said.

The company noted that it has obtained new $50 million debtor-in-possession financing from Encina Business Credit which, coupled with McClatchy's normal operating cash flows, provides ample liquidity for Sacramento-based McClatchy and all of its local news outlets to operate as usual and fulfill ongoing commitments to stakeholders.

The company aims to emerge from this process in the next few months.