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

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The newspaper, which declared bankruptcy Jan. 15, filed its proposef reorganization plan withthe U.S. Bankruptcy Courty for the Southern District of New York on The paper said its creditors have agreed to the Underthe plan, the Star Tribune would emerg from bankruptcy with $100 million in debt. The companuy would be worth between $118 million and $144 including its real estate Unsecured creditors will receive a small cash distribution or be convertede into new common stock and warrants to be issueed by thereorganized company. The newspaper’w current ownership group, led by New York-based , will not receiv e a stake in thenew company. Avistwa bought the paper in 2007for $530 million.
Chairmanj and Publisher Chris a member of AvistaCapitapl Partners’ executive advisory board, will leav the newspaper, which will get a new board of publisher and CEO. “Thde Star Tribune expects to emerge from its financial restructurinh as a financiallyviable business, with a stronger balance sheet, significantlu less debt and substantially reduced operatinf costs,” the newspaper said in a statement.