Freedom to seek creditors' vote on reorganization

Fri Jan 22, 2010 3:35pm EST

* Freedom looks for creditors approval of reorg plan

* Court hearing on plan scheduled for March

* Freedom says unsecured creditors support plan

NEW YORK, Jan 22 (Reuters) - A U.S. bankruptcy judge said on Friday that Freedom Communications Holdings Inc can begin soliciting votes from creditors on its reorganization plan.

Judge Brendan Shannon of the U.S. bankruptcy court in Delaware signed a court order on Friday allowing the broadcaster and newspaper publisher to seek creditors approval for a reorganization plan that would cut its debt by more than half to $325 million from $770 million.

Creditors votes are due by March 1, according to the order.

Freedom, which publishes The Orange County Register and about 90 other publications, has said the plan is supported by its official committee of unsecured creditors, and that under the new plan secured lenders would own the reorganized company's equity.

Freedom filed for bankruptcy in September, as several newspaper companies were forced to seek protection from creditors amid a drought in advertising.

The company will seek formal court approval of its plan at a hearing on March 9.

The case is In re: Freedom Communications Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-13046.

(Reporting by Emily Chasan; Editing by Richard Chang)

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