National publisher files for bankruptcy

The owner of some 100 daily and 200 weekly newspapers in 21 states, including a handful in Missouri and near the Springfield area, filed Chapter 11 bankruptcy last week.

Perinton N.Y.-based GateHouse Media Inc. (OTC: GHSEQ) seeks to restructure roughly $1.2 billion in debt due in August 2014, according to a news release.

The bankruptcy plan calls for GateHouse to merge with Dow Jones Local Media Group, which was purchased this month by Newcastle Investment Corp. from News Corp, for $87 million.

"The prepackaged plan proposes a balance-sheet restructuring, by which GateHouse will emerge from bankruptcy with much less debt on its balance sheet, but with its business operations completely intact," GateHouse CEO Michael Reed said in the release. "Joining with Local Media Group will be an important step in growing our business and will contribute to our future success."

Reed said the day-to-day operations of the company's media outlets should be unaffected by the bankruptcy proceedings.

GateHouse's local holdings include

• The Aurora Advertiser and Big AA Shopper in Aurora;
• the Lake Sun Leader, Lake Sun Extra and West Side Star in Camdenton;
• the Carthage Press daily newspaper and shopper;
• The Vedette in Greenfield;
• the Big Nickel shopper in Joplin;
• Neosho Daily News and the Neighborhood Showcase in Neosho;
• and the Lake Area News Focus in Osage Beach, according to the company's website.

GateHouse posted a net loss of $14 million for the second-quarter ended June 30. The company's pink-sheet stock was trading at 4 cents as of 11:38 a.m.