Star Tribune plans to exit bankruptcy in September - Business First of Columbus:

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The newspaper, which declared bankruptcy Jan. 15, filed its proposedx reorganization plan withthe U.S. Bankruptcy Court for the Southern District of New Yorkon Thursday. The paper said its creditorsd have agreed tothe plan. Under the the Star Tribune would emerge from bankruptcywith $100 millionh in debt. The company woul be worth between $118 milliobn and $144 million, including its real estate Unsecured creditors will receive a small cash distribution or be converted into new commo stock and warrants to be issued by thereorganizec company. The newspaper’s current ownership group, led by New York-basec , will not receive a stakew in thenew company.
Avista boughg the paper in 2007for $530 Chairman and Publisher Chris a member of Avista Capital Partners’ executive advisoru board, will leave the newspaper, which will get a new boardf of directors, publisher and CEO. “Ther Star Tribune expects to emerge from its financial restructuringg as a financiallyviable business, with a stronge r balance sheet, significantly less debt and substantiallty reduced operating costs,” the newspapetr said in a statement.