By Vakkas Dogantekin
ANKARA (AA) - The second-largest local news company in the U.S. which owns the Miami Herald, Sacramento Bee and others publications has commenced voluntary Chapter 11 bankruptcy.
McClatchy and each of its 53 wholly owned subsidiaries filed voluntary Chapter 11 petitions in U.S. Bankruptcy Court for the Southern District of New York, according to a company statement Thursday.
"During the case, McClatchy and its 30 local newsrooms are operating as usual," it said.
The company said the "Plan of Reorganization" projects more investment into digital transformation.
“McClatchy's Plans provides a resolution to legacy debt and pension obligations while maximizing outcomes for customers and other stakeholders," said President and CEO Craig Forman.
"When local media suffers in the face of industry challenges, communities suffer: polarization grows, civic connections fray and borrowing costs rise for local governments," he added.
McClatchy has already advised the New York Stock Exchange American of the filing and said it "expects the NYSE American and the Company will begin the process to remove its listing from the exchange."