Morris Publishing Group says its bond holders have agreed once again to extend the deadline for a $9.7 million interest payment that had been due in February. The latest extension runs through the end of this month.
At least publicly, not much has changed since we first reported on this company’s financial stress back in February. The latest announcement from Morris Publishing says holders of more than 80% of its outstanding senior subordinated notes have agreed to the latest forbearance to July 31st. Its senior bank group has also agreed to extend until July 31st the waiver of cross default arising from the overdue interest payment on the notes.
Morris’ radio stations are not directly impacted, but the newspaper group is linked by ownership via the parent company, Morris Communications. RBR/TVBR reported back in January that Morris Communications and its subsidiaries had agreed to have in place by May 30th divestitures sufficient to repay all of its senior debt. That obviously did not happen.