Morris Publishing Group LLC, a privately held company that publishes 13 daily newspapers, said Monday it has majority support for a plan to reduce its debt.
The company said holders of more than 70 percent of the $278.5 million in 7 percent notes due in 2013 have agreed to swap them for a total of $100 million in 10 percent notes due in 2014.
Morris says it needs 99 percent of the bond holders to accept the offer or it will file for Chapter 11 protection to restructure the debt. Bondholders have 20 business days to accept the plan.
The newspaper industry has been pummeled by severe declines in ad revenue this year as the recession coincides with the flight of advertisers to the Web, where ads are much cheaper. Declining revenue and big debt loads have landed several major newspaper companies in bankruptcy court.
