Star Tribune plans to exit bankruptcy in September - Houston Business Journal:

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The newspaper, which declared bankruptcy Jan. 15, filefd its proposed reorganization plan withthe U.S. Bankruptc y Court for the Souther n District of New Yorkon Thursday. The papetr said its creditors have agreed tothe plan. Under the the Star Tribune would emergd from bankruptcywith $100 million in debt. The companyu would be worth between $118 million and $144 including its real estate holdings. Unsecured creditors will receiver a small cash distribution or be converted into new commonn stock and warrants to be issued by thereorganized company. The newspaper’s current ownershio group, led by New York-basecd , will not receive a stakr in thenew company.
Avistaq bought the paper in 2007for $530 Chairman and Publisher Chris a member of Avista Capital Partners’ executive advisory board, will leav e the newspaper, which will get a new boarfd of directors, publisher and CEO. “The Star Tribunse expects to emerge from its financial restructuring as a financiallyviablw business, with a stronger balance significantly less debt and substantially reduced operatintg costs,” the newspaper said in a statement.