Two Georgia-connected newspaper companies that recently emerged from Chapter 11 bankruptcy reorganizations have wound up their legal proceedings—which means it is time to pay their lawyers.
The newspaper companies are Augusta-based Morris Publishing Group, owner of 13 daily newspapers, including The Augusta Chronicle and Savannah Morning News, and Lexington, Ky.-based Triple Crown Media Inc., operator of six daily and one weekly newspapers in Georgia, including the Gwinnett Daily Post and the Rockdale Citizen.
Morris Publishing filed its case in U.S. Bankruptcy Court for the Southern District of Georgia on Jan. 19. Augusta-based debtors' counsel Hull Barrett is requesting $138,519 in fees from the time of the filing through March 1.
The top hourly rates were $270 for Mark S. Burgreen and $235 for David E. Hudson and James B. Ellington.
Debtors' counsel Neal, Gerber & Eisenberg, based in Chicago, is requesting $233,303 in fees for the same time period.
The top hourly rate was $725 for David S. Stone.
Augusta-based James T. Wilson Jr., the court-appointed attorney for the debtor, has requested $32,410 in fees; his hourly rate is $350.
Morris emerged from bankruptcy earlier this month, 42 days after filing its case. The case moved quickly because Morris filed a pre-packaged bankruptcy, meaning that most of the creditors agreed with the terms prior to the filing.
This allowed the company to cut its debt from $418 million to $107 million, and to execute a swap of $100 million in notes due in 2014 for the cancellation of about $278.5 million in notes due in 2013. Other Morris entities also agreed to make an $85 million capital contribution and to repay $25 million in inter-company debt, according to court records.
Triple Crown emerged from bankruptcy in December, after filing for reorganization in September 2009 in U.S. Bankruptcy Court for the District of Delaware.
Wilmington, Del.-based debtors' counsel Morris, Nichols, Arsht & Tunnell recently received court approval for final compensation of $83,732 in fees incurred between September and December 2009.
The top hourly rate was $725 for Robert J. Dehney.
Debtors' counsel Dinsmore & Shohl, based in Cincinnati, received court approval for $239,360 in fees billed from September to December.
The top hourly rate was $465 for Charles F. Hertlein Jr. and Tim J. Robinson.
Triple Crown, which also filed a pre-packaged plan, assumed and reinstated about $40 million of existing first lien debt, with plans to repay other creditors in full. The company also exchanged about $35 million in second lien senior debt for $10 million in new second lien secured notes and common stock in the reorganized company; it also exchanged $27 million in existing convertible preferred stock for new common stock in the reorganized company.