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Published on 1/19/2010 in the Prospect News Distressed Debt Daily.

Morris Publishing first-day motions approved; plan hearing Feb. 17

By Caroline Salls

Pittsburgh, Jan. 19 - Morris Publishing Group received court approval of its first-day motions, which will allow it to continue its business operations while in bankruptcy, according to a company news release.

Specifically, the company received court approval to continue to use its cash to fund operating expenses, as well as to continue paying wages and benefits to employees and covering pre-bankruptcy and post-bankruptcy obligations to suppliers and customers.

"This allows us to complete the final step in our debt restructuring without any noticeable impact to our newspapers," chairman William S. Morris III said in the release.

"Just as important it saves thousands of jobs and enables us to continue to operate our business with the same high standards we have for three generations."

The court also scheduled the company's plan of reorganization confirmation hearing for Feb. 17.

Morris Publishing owns and operates newspapers, city magazines and free community publications. The company is an affiliate of Morris Communications, a privately held media company based in Augusta, Ga. The company filed for bankruptcy on Jan. 19 in the U.S. Bankruptcy Court for the Southern District of Georgia. The Chapter 11 case number is 10-10134.


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