WILMINGTON, Del. – GateHouse Media has filed for Chapter 11 Bankruptcy.
GateHouse is one of the largest publishers of locally based print and online media in the U.S.
Here in central Illinois GateHouse owns the Peoria Journal Star, Pekin Times, Galesburg Register-Mail and many others.
GateHouse announced on September 11 that it had entered into an agreement to restructure approximately $1.2 billion in debt that was scheduled to come due in August 2014.
GateHouse said it intends to continue to operate its business without interruption as a "debtor-in-possession" under the jurisdiction of the bankruptcy court.
The company’s director and chief executive officer, Michael Reed, said GateHouse has sufficient cash to operate during the bankruptcy process.
Reed said once GateHouse emerges from bankruptcy it will be under common ownership with Local Media Group which operates eight daily community newspapers and thirteen weeklies.
Journal Star employees said the announcement came as no surprise.
"For some time, we've known the bankruptcy was imminent," said Phil Luciano, president of Peoria Unit 86 of the United Media Guild. "From all indications, there's nothing involved in the process that gives Local 86 concern regarding our contract or relationship with GateHouse."