KMPH Fox 26 Central San Joaquin Valley News Source in Fresno, California Entertainment, News, Sports and Weather | Hearing held on Freedom bankruptcy documents - October 08
Member Center:
Incoming BP CEO: It's time for 'scaleback' in cleanup, but company will still set things right More>>
NY Reps. Weiner, King spar on House floor over handling of bill to aid sick 9/11 responders More>>
Fire official: At least 1 dead in LA explosion; crews search collapsed structure for others More>>
Drug lords, bomb threats and more: young aspiring police officers train, compete at conference More>>
Arizona sheriff forges ahead with aggressive immigration sweeps even after court ruling More>>
Quest for freedom a full-time job for mothers of 3 American hikers jailed for 1 year in Iran More>>
Wildlife officials await test results to confirm captured bears attacked campers More>>
In quiet South Carolina town, another skirmish in immigration battle as councilman seeks ban More>>
WILMINGTON, Del. (AP) - A Delaware bankruptcy judge declined to issue an immediate ruling Monday in a dispute over documents and confidentiality in the Chapter 11 case of Freedom Communications Holdings Inc.
Freedom, which owns The Orange County Register in California, dozens of other newspapers and eight televisions stations, sought bankruptcy protection last month, citing a steep drop in advertising revenue and debts of $1.08 billion, including $770 million in bank debt.
According to a prepackaged plan approved by a majority of the company's lenders, most of the bank debt would be forgiven in return for ceding control of the company to the lenders, led by JPMorgan Chase&Co.
But Irvine, Calif.-based Freedom has been feuding with its committee of unsecured creditors, which includes the Pension Benefit Guaranty Corporation, over their requests for financial information.
Following a hearing Monday afternoon, Judge Brendan L. Shannon said he needed time to consider PBGC's argument that signing the confidentiality agreement demanded by Freedom in return for access to documents could violate the agency's obligation to provide information to Congress or the executive branch if requested.
Joel Ruderman, an attorney for the PBGC, said that if the judge denies the PBGC's motion to compel Freedom to produce confidential documents, the federal agency likely would either appeal the decision or drop off the creditors committee. PBGC is frequently involved in bankruptcy proceedings and represents a potential $100 million claim in Freedom's case.
Robert Klyman, an attorney for Freedom, said the PBGC was seeking "special treatment" and should not be allowed to act as a conduit for information to parties not involved in the bankruptcy.
The judge encouraged both sides to work cooperatively in advance of the next hearing, scheduled for Oct. 14.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
