Lee Enterprises gets extension of covenant waiver on $306 million Pulitzer notes

By Susanna Moon

Chicago, Jan. 16 - Lee Enterprises, Inc. said a waiver of covenant conditions was extended until Jan. 30 on its $306 million Pulitzer notes due April 2009 of its subsidiary, St. Louis Post-Dispatch LLC.

The waiver had been scheduled to expire Friday.

"Lee and its lenders continue to work diligently to effect an extension of the Pulitzer notes and to make longer-term changes to our bank credit agreement to maintain the company's liquidity," Carl Schmidt, vice president, chief financial officer and treasurer for Lee, said in a press release.

Lee said it would be in technical default of several provisions under its applicable debt agreements without a waiver extension by holders of the notes.

An event of default would allow the noteholders to exercise certain remedies, including acceleration of the maturity of Lee's debt. The waiver contains a provision that will allow it to be withdrawn with 48 hours notice.

Lee Enterprises is a Davenport, Iowa-based publisher of local news, information and advertising.

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