Taking dead aim at reports that flared Wednesday (including here), Pioneer Press owner Media News Group denies it might use bankruptcy to get out from under $1.3 billion in debt.

In a late-afternoon media release, Denver-based MNG calls the report "substantially inaccurate in almost all respects," but does not get specific, except to deny the bankruptcy possibility, or a change in company control.

However, MNG acknowledges it is trying to get creditors to accept an unspecified stake in the struggling media conglomerate.

The industry publication Debtwire reported June 24 that "the company is expected to implement its restructuring through a pre-arranged or pre-packaged bankruptcy filing," according to an unnamed "lender and a sellside analyst."

In recounting the Debtwire piece this morning, Michael Roberts, a reporter for the Denver alt-weekly Westword, wrote, "This move doesn't mean MediaNews is definitely filing for bankruptcy — far from it."

Debtwire's Chloe Lutts and Hema Oza also reported that MNG stopped making loan amortization and bond interest payments March 31; subsequent payments were due Tuesday and Wednesday. The reporters said lenders were allowing payments to be postponed only through Sept. 30.

The release says the company "remains in compliance with its bank agreements while refinancing discussions continue."

Here's the release:

MediaNews: No bankruptcy, no management change
MediaNews release

July 1, 2009

DENVER, CO ... A media report on Wednesday, citing rumors from unnamed sources, reports that MediaNews Group has proposed a refinancing plan to its bank lenders that would cause a change in control of the company and possibly involve a bankruptcy filing.

The story is inaccurate in almost all respects. As previously reported, MNG is in discussions with its bank lenders to restructure its balance sheet, including an exchange of some of its bank debt for equity in the company.

Proposals to the company's lenders do not include a change in control of the company, nor do they include proposals for any bankruptcy filings, as the rumors suggest.

MediaNews Group remains in compliance with its bank agreements while refinancing discussions continue.