Freedom Communications can issue reorganization plan statement

Freedom Communications Inc., owner of the Orange County Register along with 89 other daily and weekly publications and eight TV stations, received court approval Thursday for a disclosure statement supporting its plan to emerge from Chapter 11 bankruptcy protection.

The approval of the Irvine company’s statement in a Delaware U.S. Bankruptcy Court gives Freedom the clearance to solicit votes on its reorganization plan from its creditors, the company said in a statement.

A hearing to grant final approval to the reorganization plan has been set for March 9, the statement said.

The plan has already been approved by groups representing both Freedom’s secured and unsecured creditors, Freedom said.

Under the reorganization plan, Freedom’s secured debt would be reduced to $325 million from $770 million, with its secured lenders owning 100% of the common stock in the reorganized company, the statement said.

The plan would also result in the reinstatement of 70% of the benefits promised to those enrolled in Freedom’s non-qualified pension program, to be paid out according to the original terms of those pension plans, the company said.

Freedom said unsecured creditors would be paid out of two funds totaling $20 million.

Freedom filed for Chapter 11 protection in Wilmington, Del., on Sept. 1, 2009.

The company has set up a restructuring information line at (800) 299-1960 for questions about the reorganization plan.

nathan.olivarezgiles

@latimes.com