Morris Publishing notes payment deadline, credit agreement waiver extended to April 24

By Caroline Salls

Pittsburgh, April 7 - Morris Publishing Group, LLC has obtained an extension to 5 p.m. ET on April 24 to make a $9.75 million interest payment originally due Feb. 1 on its senior subordinated notes, according to a company news release.

Morris said holders of more than 80% of the outstanding amount of the notes agreed to extend the forbearance period for the payment.

"We are continuing to address our debt structure," chief executive officer William S. Morris IV said in the release.

"We are hopeful that we will reach an agreement that satisfies all parties."

In addition, Morris' senior bank group has agreed to extend a cross-default waiver arising from the overdue interest payment on the senior subordinated notes to April 24.

According to the release, the bank group also amended terms of the senior credit agreement to delete the requirement that Morris or related entities at least sign a binding letter of intent by May 30 for a transaction that would generate funds to prepay the company's roughly $140 million of senior debt.

For up to seven days after the forbearance period, the company's ability to enter into any senior debt refinancing transaction that would allow any affiliate of Morris to become a holder of senior debt is restricted without previous written consent of holders of more than 66 2/3% of the outstanding notes, according to an 8-K filed with the Securities and Exchange Commission.

Under the amend notes forbearance, Morris Publishing is also required to submit a restructuring proposal to the noteholders' advisers by April 7.

Morris Publishing owns and operates newspapers, city magazines and free community publications. The company is an affiliate of Morris Communications Co., LLC, a privately held media company based in Augusta, Ga.

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