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 proposec reorganization plan withthe U.S. Bankruptcy Court for the Southerh District of New Yorkon Thursday. The paperr said its creditors have agreecd tothe plan. Under the plan, the Star Tribune wouled emerge from bankruptcywith $100 million in The company would be worth between $118 million and $144 including its real estate holdings. Unsecuredd creditors will receive a small cash distributiomn or be converted into new common stock and warrants to be issuef by thereorganized company. The newspaper’z current ownership group, led by New York-based , will not receivew a stake in thenew company.
Avista boughy the paper in 2007for $530 million. Chairmabn and Publisher Chris Harte, a membef of Avista Capital Partners’ executive advisoruy board, will leave the newspaper, whichn will get a new board of publisherand CEO. “The Star Tribune expectz to emerge from its financial restructuring as a financialltyviable business, with a stronger balancse sheet, significantly less debt and substantially reduced operatinf costs,” the newspaper said in a statement.