Triple Crown disclosure approved; confirmation hearing set for Nov. 24

By Jennifer Chiou

New York, Oct. 26 - Triple Crown Media Inc.'s disclosure statement for its plan of reorganization was approved on Monday in the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing will be held on Nov. 24.

On Sept. 14, the company made a pre-packaged Chapter 11 bankruptcy filing after its second-lien lenders agreed to the company's proposed restructuring terms.

According to the disclosure statement, Triple Crown was faced with more than $70 million in secured debt, with more than $40 million scheduled to mature at the end of 2010 and the rest in 2011.

The company already said that market conditions and financial projections made it apparent that Triple Crown was significantly over-levered and would be unable to obtain and service replacement financing.

Under the company's pre-packaged plan of reorganization, second-lien credit facility claims will be exchanged for new common stock in the reorganized company.

Holders of preferred stock equity interests will also receive new common stock if they vote in favor of the plan.

Creditor treatment will include:

• Holders of administrative claims, priority tax claims, general unsecured claims and other priority claims will be paid in full in cash;

• Holders of other secured claims will either have their claims reinstated or receive full payment in cash or the collateral securing the claim;

• Holders of second-lien credit facility claims will receive a share of $10 million in new notes and 90% of the new common stock in the reorganized company. If the preferred stock creditor class does not vote to accept the plan, the second-lien creditors will receive an additional 5% of new common stock;

• Unliquidated claims are disputed and will be liquidated and satisfied in the ordinary course of business through access to insurance;

• Intercompany claims will be adjusted, continued or discharged to the extent appropriate;

• First-lien credit facility claims will be reinstated;

• Holders of subordinated securities claims and common stock equity interests of non-surviving debtors and Triple Crown Media will receive no distribution;

• Holders of equity interests in debtors other than Triple Crown Media will retain their interests; and

• Holders of preferred stock equity interests will receive 5% of the new common stock if they vote to accept the plan and no distribution if they vote to reject it.

The company has requested court approval to use the cash collateral of its pre-bankruptcy lenders to fund its operations while in bankruptcy.

According to court documents, Triple Crown had $33.15 million in total assets and $85.98 million of total debt at Aug. 31.

The company did not list any unsecured creditors with claims of $1 million or more.

Triple Crown is a Lawrenceville, Ga., newspaper publisher. Its Chapter 11 case number is 09-13181.

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