Triple Crown Media emerges from bankruptcy under GoldenTree control

By Caroline Salls

Pittsburgh, Dec. 11 - Triple Crown Media, Inc. emerged from Chapter 11 bankruptcy when its pre-arranged plan of reorganization took effect on Dec. 8, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, the plan was confirmed on Dec. 8 by the U.S. Bankruptcy Court for the District of Delaware.

Under the plan:

• Roughly $35 million of second-lien senior secured debt was exchanged for $10 million of new 7% second-lien secured notes and 90 shares of the new common stock of the reorganized company.

As a result, funds managed by GoldenTree Asset Management, LP now owns 74% of the reorganized company's new common stock.

• Triple Crown's $27 million of existing convertible preferred stock was exchanged for five shares of the new common stock.

• The reorganized company has reserved five shares of the new common stock for issuance under management compensation programs;

• The company's $40 million of existing first-lien senior secured debt was assumed and reinstated;

• The company's existing stock was cancelled; and

• All other creditors were, or will be, paid in full.

On the plan effective date, the company said it entered into an amendment to its first-lien senior secured credit agreement with Deutsche Bank Trust Co. Americas to increase the threshold of surplus cash that Triple Crown Media must be holding during the first fiscal quarter of calendar year 2010 before it would be forced to prepay amounts owing under the credit agreement.

Triple Crown said it had $34.62 million in assets and $87.22 million of debt as of Nov. 30.

In addition, the reorganized company's board of directors includes Ted S. Lodge, Steve Shapiro, Thomas Stultz, Robert S. Prather Jr. and Paul B. Healy.

Gerald N. Agranoff, James W. Busby, Hilton H. Howell Jr., Monte C. Johnson and George E. Nicholson are no longer directors.

Triple Crown, a Lawrenceville, Ga., newspaper publisher, filed for bankruptcy on Sept. 14. Its Chapter 11 case number is 09-13181.

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