On January 22nd, Affiliated Media, Inc. (the "Debtor" or "Affiliated"), filed a chapter 11 petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware. According to documents filed with the Bankruptcy Court, the Debtor's operations include daily and weekly newspapers, "niche publications," internet websites, four radio stations and a television station in Alaska. Affiliated's bankruptcy follows a drop in revenue from $1.3 billion in 2007 to $1.06 billion in 2009. Advertising revenue, the largest component of Debtor's revenue, dropped 14% over the last year.
Prior to bankruptcy, Affiliated circulated a prepacked plan of reorganization and disclosure statement. Under the plan, Affiliated hopes to reduce approximately $930 million in debt down to $150 million. If all goes as planned, Affiliated plans to emerge from bankruptcy in a short amount of time "poised for future growth and stability." This bankruptcy proceeding is before the Honorable Kevin J. Carey, Chief Judge of the Delaware Bankruptcy Court. Judge Carey is also presiding over the Tribune bankruptcy, another major newspaper publisher seeking bankruptcy protection in Delaware