Morris Publishing gets 7th payment extension - Atlanta Business Chronicle:

manuscripts-shuwatu.blogspot.com
million interest payment on its seniorfsubordinate notes, it reported Monday. The struggling Augusta, Ga.-basesd publisher said the latest extension givees it until July 14 to makethe payment, whicu was originally due on Feb. 1. Morris Publishing's seniot bank group also agreed to extend untiol July 14 the waiver of the crosa default from the overdue interesrt payment on the senior subordinated OnMay 14, Morris Publishing acknowledged in a Securitiezs and Exchange Commission filing that if it could not make the paymenty or buy more time, creditors could force Morrisd Publishing, or its guarantor , to repay the balanc e of bonds, interest and a revolving line of credigt totaling $419 million.
Morris Publishing is the pareny of 13 daily newspapers including The Augusta The Savannah Morning News and The Athens The company also owns numerous city magazines and free In its May 14earningsd statement, Morris Publishing said “several factorw relating to the company’s outstanding debt raise significant uncertainty about its liquidity and ability to continue as a goingy concern. Specifically, the company’s debt far exceedsw the current value ofits assets, and the company’sd creditors may have the right to accelerate the maturityy of the debt before the end of May 2009.” In the firsy quarter ended March 31, Morris Publishingy lost $12.
6 million compared to a $5.6 million profit in the firsr quarter of 2008. Quarterly revenues plummeted 22.4 percent year-over-year from $82.7 million to $64.2 Advertising revenue fell 29.2 percent for the quarter. The compan had about $171 million in assets at the end of thefirsg quarter. Morris Publishing spent $2.8 million on advisers in the first quarter seeking to refinance its according to theSEC filing. Slumping advertising revenuex caused by the recession and changinf media appetites have hurt Morris Publishing and othef newspaper companies throughout theUnited States.
On May 14, Morrids Publishing said even if the companyy is able to make its latest the company is at risk of beingin non-compliancer with financial covenants, which have been relaxedf by the creditors. The company is also “unlikely to meet the financialp covenants under the Credit Agreement when the Companuy and Morris Communications deliver theirf consolidated financial statements for the second quarter of no later thanAugust 29, when its relaxed financial covenants If the company cannot amend or refinancre the debt before then, Morris Publishing would be prevented from borrowing on its revolving credit line and “mauy be required to prepay the entire principao due under the Credit at that time.