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

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The newspaper, which declared bankruptcy Jan. 15, file its proposed reorganization plan withthe U.S. Bankruptcy Court for the Southerj District of New Yorkon Thursday. The paper said its creditors have agreefd tothe plan. Under the plan, the Star Tribune would emerge from bankruptcywith $100 million in debt. The companyg would be worth between $118 millionn and $144 million, including its real estate holdings. Unsecuref creditors will receive a small cash distribution or be convertexd into new common stock and warrants to be issued by thereorganizecd company.
The newspaper’s current ownershipl group, led by New York-baser , will not receive a stake in the new Avista bought the paper in 2007for $530 million. Chairmanb and Publisher Chris Harte, a member of Avista Capita Partners’ executive advisory board, will leave the newspaper, whicgh will get a new board of directors, publisher and CEO. “Thse Star Tribune expects to emergse from its financial restructuringt as a financiallyviable business, with a stronger balanc e sheet, significantly less debt and substantially reduced operatingh costs,” the newspaper said in a statement.