The Augusta, Ga.-based company said in a news release it would file a "prepackaged" plan, preapproved by a majority of its creditors, in federal bankruptcy court by Tuesday. The plan seeks to slash Morris Publishing's debt of $415 million by nearly 70 percent.
"We're pleased that so many of our noteholders agreed to support this move to get Morris Publishing on more solid financial ground," said Sandra Sternberg, a spokeswoman for the company.
As newspaper profits have dwindled industrywide from the economic recession, on top of readers lost to online media, Morris Publishing has been saddled with debt mostly accumulated from its acquisition of newspapers in the 1990s.
In Alaska, Morris Publishing owns the Kenai Peninsula Clarion, the Homer News and the Juneau Empire.
Morris Publishing is a former subsidiary of Morris Communications.
A reorganization a year ago left Morris Communications as an affiliate of Morris Publishing Group, but no longer its parent company. Morris Communications owns six radio stations in Anchorage, the Alaska Star in Eagle River, Alaska magazine and the Alaska Journal of Commerce, among other properties. These are not involved in the Morris Publishing plan to seek bankruptcy protection.
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