Business News

Morris Publishing Obtains Extension of Forbearance Period on Overdue Interest Payment

Monday 03. August 2009 - Morris Publishing Group, LLC announced today that it has obtained an extension until August 14, 2009 to make a $9.7 million interest payment on its senior subordinated notes which was originally due Feb. 1, 2009.

In addition, the forbearance agreement incorporates Morris Publishing’s anticipated failure to make the $9.7 million interest payment due on August 3, 2009. The holders of more than 80 percent of the outstanding amount of senior subordinated notes have agreed to extend the forbearance period for these payments.

Morris Publishing’s senior bank group also agreed to extend until August 14, 2009 the waiver of the cross default arising from any overdue interest payments on the senior subordinated notes. In addition, the bank’s revolving credit commitment was permanently reduced to $60 million.