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MCCLATCHY COMPANY: Committee Taps Moelis as Investment Banker

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The official committee of unsecured creditors appointed in the Chapter 11 cases of The McClatchy Company and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Moelis & Company LLC as its investment banker.

Moelis & Company will provide these services to the committee in connection with Debtors’ Chapter 11 cases:

a. assist the committee in reviewing and analyzing Debtors’ results of operations, financial condition and business plan;

b. review, analyze and negotiate a potential restructuring;

c. analyze Debtors’ capital structure;

d. assess the financial issues and options concerning Debtors’ Chapter 11 plan of reorganization and sale of their assets;

e. review any alternatives to a restructuring proposed by Debtors or their creditors;

f. advise the committee in negotiations;

g. participate in hearings before the court and provide testimony and expert reports; and

h. provide other investment banking services in connection with the restructuring.

The firm will be paid a restructuring fee of $3.45 million and a monthly fee of $150,000.

After six full monthly fees have been paid to Moelis, 50 percent of any subsequent monthly fees actually paid to and retained by the firm will be credited once (without duplication) against any restructuring fee subsequently payable to the firm.

William Derrough, managing director and co-head of Moelis & Company’s Recapitalization and Restructuring Group, disclosed in court filings that his firm is “disinterested” within the meaning of Section 101(14) of the Bankruptcy Code.

Moelis & Company can be reached through:

William Q. Derrough
Moelis & Company LLC
399 Park Avenue, 5th Floor
New York, NY 10022
Tel: +1 212 883 3830
Email: william.derrough@moelis.com

About The McClatchy Company

The McClatchy Co. (OTC-MNIQQ) operates 30 media companies in 14 states, providing each of its communities local journalism in the public interest and advertising services in a wide array of digital and print formats. McClatchy publishes iconic local brands including the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the Fort Worth Star-Telegram.

McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange American under the symbol MNI.

On Feb. 13, 2020, The McClatchy Company and 53 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-10418) with a plan of reorganization that will cut $700 million of funded debt in half.

McClatchy was estimated to have $500 million to $1 billion in assets and debt of at least $1 billion as of the bankruptcy filing.

The cases are pending before the Honorable Michael E. Wiles.

Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as general bankruptcy counsel; Togut, Segal & Segal LLP as co-bankruptcy counsel with Skadden; Groom Law Group as special counsel; FTI Consulting, Inc. as financial advisor; and Evercore Inc. as investment banker; and Deloitte & Touche LLP as auditor. Kurtzman Carson Consultants, LLC is the claims agent.

The U.S. Trustee for Region 2 appointed a committee of unsecured creditors in Debtors’ bankruptcy cases. The committee tapped Stroock & Stroock & Lavan LLP as its bankruptcy counsel, and Berkeley Research Group, LLC as its financial advisor.

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