According to court documents filed Monday, the Star Tribune wants to extend its stay in bankruptcy 90 days. Strib management sought to move the deadline for filing a reorganization plan from May 15 to Aug. 13, and give creditors until Oct. 12 to agree to the plan, rather than the current July 14 date.
The filing — which would give management “exclusive” rights to file a reorganization plan — notes the extension “is not opposed” by the paper’s creditors, who are owed over half a billion dollars.
Shortly after the mid-January filing, management noted an April 13 deadline from secured creditors for reworked labor deals. That deadline passed unenforced.
The document notes a recovery plan has been agreed to for unsecured creditors, who stand in line behind secured creditors. No details were disclosed, but unsecured creditors typically get pennies on the dollar, if they get anything at all.
The document cites “tangible progress” in areas such as beating concessions out of unions, but “as would be expected of companies as large as and with businesses as complex as the Debtors’, there is more that needs to be done.”
One beneficiary of the move will be the Strib’s bankruptcy advisors; according to documents filed earlier, the paper has been laying out about $1.5 million in reorganization costs.
As noted Monday, the Strib is losing money each month in bankruptcy, both as an operating business and overall. However, the paper is sitting on $36 million in cash, which looks able to carry the $1 million to $2 million monthly net losses into October.