The Newspaper Guild is closely monitoring GateHouse’s ongoing financial reorganization.
Here are some of the basics:
The company could file its prepackaged bankruptcy as soon as Wednesday. It could take the Guild a month or longer to learn the full details of the filing. Some prepackaged bankruptcies are resolved quickly, in just a few months.
The Guild has extensive experience dealing with media company bankruptcies. TNG is prepared to get as involved as necessary. Lawyers, researchers and other labor professionals are ready to take action as needed.
Some prepackaged bankruptcies have a minimal effect on union contracts and negotiations. The early indications from GateHouse are positive, but we have no definitive word on that.
Fortress Investment Group LLC is a primary owner of GateHouse stock. Its Newcastle Investment Corp. now holds much the GateHouse debt. So Fortress believes the bankruptcy will fly, with Newcastle converting debt into stock. Other creditors will either accept stock or collect 40 percent of what they are owed.
These folks plan to create a new company, New Media, combining the GateHouse properties and the recently purchased Dow Jones properties. New Media will also look to add additional properties while focusing on digital growth.
On the local level, the United Media Guild will keep pressing for a first contract that brings you the protections you need — and the rewards you deserve for pushing the company forward through difficult times.