Friday, January 22, 2010

MNG bankruptcy lists pension guarantee agency

MediaNews Group, which officially filed its Chapter 11 bankruptcy petition in federal court today, listed the federal Pension Benefit Guaranty Corp. as a potential creditor that may claim a $70 million debt.

The papers filed by MediaNews today didn't elaborate on the pension debt, but the PBGC guarantees pension benefits when businesses close or enter into bankruptcy. It secures the pensions with premiums paid by other employers.

A letter MediaNews CEO Dean Singleton sent to employees last week said, "Pension plans will not be affected as the company intends to continue its sponsorships of all current plans."

The papers listed The Bank of New York Mellon as the largest creditor in the bankruptcy case, with a debt of $326 million.

The Denver-based chain of 54 daily newspapers listed debt of $500 million to $1 billion and assets of $100 million to $500 million. A press release issued today said the company hopes to emerge from Chapter 11 in two months.

The filing was done under the name Affiliated Media Inc., which is described as the holding company of MediaNews Group. The case number is 10-10202, U.S. Bankruptcy Court, District of Delaware (Wilmington).

1 comment:

TAR said...

Ok, this bothers me substantially. Would the PPC mind getting some specific information here ASAP.