Wednesday, January 28, 2009, 10:33am EST | Modified: Thursday, January 29, 2009, 9:49am
Morris Publishing hires legal, financial counsel
Jacksonville Business Journal - by Christian Conte
Morris Publishing Group LLC, the parent company of the Florida Times-Union, has hired a financial adviser that specializes in helping newspaper chains in or near bankruptcy.
Lazard Freres & Co. LLC will assist the company in evaluating its capital structure options, according to a press release issued by the company. Lazard Freres also works for the Tribune Co., the owner of the Los Angeles Times and the Chicago Tribune, among others, which filed for Chapter 11 bankruptcy protection in December, and the Journal Register Co. (NYSE: JRC), which owns the New Haven Register.
Morris Publishing, an affiliate of Augusta, Ga.-based Morris Communications Co. LLC, is a privately held media company. Morris Publishing owns and operates 13 daily and nondaily newspapers, city magazines and free community publications in the Southeast, Midwest, Southwest and Alaska. The company has struggled with declining advertising revenue for several years, resulting in layoffs and other cost-saving measures.
Morris Publishing amended its credit agreements with lenders and JP Morgan Chase & Co. for the third time in October, according to a filing with the U.S. Securities and Exchange Commission. Part of the changes include Morris Publishing proving it had sufficient funds to pay its debts through March 31. This could include selling company assets to meet the loan agreements.
The company lost $163.2 million in the quarter ended Sept. 30, compared with income of nearly $5 million in the same period in 2007, according to its latest earnings report with the SEC.
The Poynter Institute Media Business Analyst Rick Edmonds said Morris Publishing is among the growing number of newspaper chains that are struggling with debt. Like the Journal Register, Morris Publishing held down expenses to optimize profits during good economic conditions, which makes it even more difficult now that the company has had to cut costs and staff.
Morris Publishing also hired Gerber & Eisenberg LLP as legal counsel. Bankruptcy, reorganization and creditors’ rights are among the specialities listed on the law firm’s Web site.
A representative of Morris Publishing could not be reached for comment.
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